All over the world, for more than a decade now, mobile commerce or mCommerce continues to grow and is projected to continue with strong growth in the years to come. With worldwide mobile sales estimated to be $626 billion by the year 2018, it is inspired by the current projection from Goldman Sachs that 535 million consumers all throughout the globe would make a purchase this year on a mobile device.
The number of people using their smart phones or tablets to make purchases would significantly increase in the years to come. Based on mCommerce predictions by Goldman Scahs as well as population projections from the United Nations, in the year 2018, 14. 4 % of the 7.56 billion people in the world would make at least one purchase on a mobile device. Mobile, retailing, ticketing, booking and billing accounts for the top three biggest markets during the forecast period 2014-2019. mCommerce service is applicable for retail, hospitality, travel, telecom, media and entertainment verticals, for any kind of business since these days, majority of business relies on web communications to take major decisions.
The essentialities of business transactions today include internet service, continuous connectivity and speedy sharing of data. These days, customer prefers flexible and easier solutions for the payment and transaction. Because of the advancement in internet technology, and of course better web connectivity over mobile devices, mCommerce players could now serve their clientele with various multimedia services. Aside from mobile retailing, booking, ticketing and billing, there are several other revenue pockets, particularly WAP or Wireless Application Protocol and premium SMS that would witness considerable growth on the forecast period.
The growth in the mCommerce industry is expected to grow with the rising growth in mobile devices influenced by proliferation of mobile communication devices that are media-rich, such as smart phones and tablets, the growing number or web users, rapid broadband speeds and boosted internet usage. mCommerce services are crucial in delivering any kind of business transactions, for any type of business. The application of mCommerce services across the top three verticals include application in the retail market, which helps in better communication with clients by providing information as well as location based services. It helps the travel and hospitality market by providing access to a new kind of transactions that include on-the-air card less payments, more interaction with customers, convenient and easy one-click booking and payments. In the media and entertainment industry, mCommerce provides payment processing and service delivery with dynamic real-time integration and quick application development.
According to Internet Retailer, sales through smartphones in the US increased by 101% during the first quarter of 2014, compared to the same period in the year 2013. Additionally, the average order value on purchases made by mobile devices increased by 12% and conversion rates by 29%. Furthermore, Forrester, a research company has predicted that 29% of all eCommerce transactions in the US in the year 2014 were mobile commerce transactions. In terms of actual transaction amounts, the numbers are impressive. For instance, PayPal processed $27 billion of mobile transactions in the year 2013, while AliPay exceeded that, claiming that it has processed $150 billion mobile transactions in the same period of time. mCommerce is a trend that continues to grow as more and more people are using their mobile phones and tablets to do transactions worldwide.