Tag: m-commerce

Brits lag behind US in mobile commerce

Posted on March 13, 2013 by - News

us-revolutionary-warAlthough British retailers seem to have an upper hand in European mobile commerce, a new report indicates that they are lagging behind their American counterparts in m-commerce.

The study was carried out by multi-touch retail technology provided Skava, and it found that only half of Britain’s top 100 retailers have optimized their websites for mobile devices. In contrast, all of the top US retailers have already done so.

The study found that revenue from mobile accounts for about one percent of all online sales in Europe. However, it is growing at a compound rate of 43.1 percent. Forrester estimated mobile revenue will account for 6.8 percent of European online revenue by 2017. That amounts to 19 billion euro.

Forrester analyst Martin Gill stressed that UK retailers have to adopt mobile tech if they hope to move forward. However, he also believes they will face plenty of challenges.

“A number of factors encourage and inhibit the adoption of mobile commerce… consumer trust, the convenience and value proposition of mobile shopping, the ease of payment and the availability of products at the right price,” said Gill. “European eBusiness executives in many countries have been slow to provide mobile-optimized experiences and these factors — both supply and demand — will continue to limit the opportunities.”

The study found that smartphone and tablet users tend to interact with their devices quite a bit differently than PC users. Hence, retailers’ websites must be optimized to cater to new platforms. They also need to respond quickly to new market trends and devices, which is easier said than done due to the mind boggling pace of progress in the mobile industry.

Industry thinks digi-wallets and NFC are overhyped

Posted on March 12, 2013 by - News, Opinions

google-walletThe payments industry is slowly starting to adopt new mobile payments technologies, but industry leaders believe that the digital wallet concept is overhyped, along with NFC.

The Payments Innovation Jury, an anonymous group of 25 industry leaders gathered in a hollowed out volcano, reckons the next wave of e-payment innovation will come from Asia rather than Europe.

The secretive Payment Innovation Jury features members from 14 different countries whose names are kept private, so they can speak freely. Most members are or have been high level execs in companies such as MasterCard, PayPal and Visa, reports Venture Beat. 

In their latest report, the jury concluded that NFC and digital wallets are overhyped, and we tend to agree. Most members don’t believe NFC will live up to its hype and many reckon there is no demonstrable need for contactless payments from consumers. However, it is worth noting that NFC has plenty of applications other than mobile payments. More than half of the group believe digital wallets will replace credit and debit card payments, but a sizable number don’t agree.

“The Jury offered their views on which payments innovation has the greatest hype rating and therefore the biggest risk that the business case will not be achieved,” the report said. “Hype is particularly prevalent in payments, with many organizations trying very hard to talk up their chosen innovation in order to achieve the necessary critical mass.”

In other words it is beast to tread carefully, just in case. Many outfits are indeed trying to talk up their solutions, but we are still a long way from widespread adoption and standardization. One jury member argued that progress in Europe is hampered by standardization initiatives such as SEPA, but a lot of innovation is expected from Asia and Africa.

Interestingly, the group found that cross-border remittance services have a lot of potential. Sending money abroad via mobile payment solutions could be the most profitable niche over the next five years. It is a rather big market. Plenty of countries in Eastern Europe, North Africa and practically the entire third world have sizable expat communities who send money back home on a regular basis.

PayPal launches iOS SDK

Posted on March 11, 2013 by - News

paypal-logoPayPal has released a new SDK for Apple’s iOS platform and the new kit is expected to speed up development, open up a host of new possibilities and make life easier for developers.

At the moment, iOS apps using PayPal have to redirect traffic to web based gateway systems, making the whole process more complicated, time consuming and slower. However, the new SDK should help integrate services in apps themselves, greatly reducing developers’ workloads.

PayPal CTO James Barrese hopes the new SDK will give developers more freedom to focus on innovating rather than handling the complex task of sorting out mobile payments.

“We listened when our developers said they wanted better capabilities from us, and now we’re doubling down on our developer programs to deliver the best tools in the industry,” he said.

Since the PayPal payment service will not be integrated into apps, consumer will be able to complete their transactions without leaving the app, greatly streamlining the process. PayPal also released a new API that should enable developers to integrate a clever card digitization feature. The new approach will let users simply take a picture of their cards, letting the app scoop up all the details from the photo, which is much easier than typing them in.

Best of all, PayPal claims its new Java Script PayPal button can be integrated into apps with just five lines of code, which is roughly a fortnight in developer parlance.

Heavyweights hug mobile payments, but more work ahead

Posted on March 1, 2013 by - News, Opinions

google-walletA series of optimistic reports and forecasts on e-commerce seems to indicate that mobile payments are becoming increasingly commonplace and that we could soon ditch our trusty leather wallets in favour of smartphones. Sadly though, we won’t, at least not anytime soon.

The trend is positive and we are seeing a lot of growth, especially in m-commerce. In addition, a number of big players have made significant announcements in recent months. Last week Visa expanded its Visa Ready Partner Programme in an effort to get more vendors, developers and retailers on board. Samsung followed up with a service of its own, the Samsung Wallet, which bears more than a passing resemblance to Apple’s Passbook app. Samsung already managed to attract several partners for its new service, including Visa.

Then there is MasterCard’s MasterPass service, which allows retailers come up with their own applications and services, based on MasterCard’s infrastructure. PayPal is no newcomer to the market, but its PayPal Here service is. Launched in the US last year, it finally found its way across the pond to European shores. It offers a comprehensive solution, with a hardware dongle and cross-platform app support, and it allows users to pay using credit cards, cash, PayPall wallet or checks.

What about the elephant in the room? Well, there’s actually two elephants. Google Wallet has been around for quite a while, but it failed to take off. It was supposed to demonstrate NFC capabilities on Nexus gear, dating back to the Nexus S, which it did. However, much like NFC, Google Wallet never made much of a name for itself.

It might have something to do with the second elephant, Apple, as it never embraced NFC technology and it is still unclear whether the next iPhone will feature it. Apple has not made much noise on the mobile payment front, which doesn’t mean it is not looking into it. To the contrary, Apple has already filed several patents for NFC enabled devices and services. Cupertino doesn’t like spilling the beans on upcoming products and services, and unlike some companies, it tends to have excellent execution. It is also worth noting that Apple bought AuthenTec, a maker of fingerprint sensors and security solutions, for $356 million last year.

With all that in mind, nobody should be surprised by soaring m-commerce and mobile payments statistics. In fact, we should be seeing even more services, from brick and mortar shops to pubs, but we aren’t. Mobile payments and are still geeky turf, with little traction among mainstream consumers. The sheer lack of widespread support for m-commerce platforms and the fast pace of development means that many consumers don’t even know it exists. What’s more, many of those that do still have some reservations.

Privacy and security are valid concerns, but a recent survey by Intela revealed that the majority of smartphone users in the UK now feel comfortable with mobile payments. It is hardly surprising, as most smartphone users have grown accustomed to making micro transactions in app stores or through in-app payments. The difference between spending a few pence on an app and a few pounds in a retail shop is philosophical and not technical in nature. In fact, it appears that humble micro transactions have already done more for m-commerce confidence than all the fancy services rolled out by credit card companies and tech outfits.

In spite of that, smartphones will not replace wallets, at least not entirely and certainly not anytime soon. Cash can’t be hacked, it can’t be rendered useless by a flat battery or a few drops of lager. In some cases it is just more practical. The same pretty much goes for credit cards. Smartphones have their own set of advantages. Motorway tolls, public transportation, congestion charges and parking based on GPS information are some that come to mind. Phones are an excellent payment platform, but they will complement cash and cards, not replace them.

PayPal and Google to cash in as mobile payments go mainstream

Posted on February 15, 2013 by - News, Products

google-walletMobile payments are slowly but surely going mainstream. Mass adoption of smartphones and tablets is making the dream of fully digital wallets a reality and it is opening new possibilities for traditional banks, credit card companies and net-based payment services.

E-commerce spending hits $186bn in US

Posted on February 8, 2013 by - News

shut-up-and-take-my-moneyRetail e-commerce is still growing, in spite of economic volatility and a host of other concerns. According to comScore, 2012 was a record year for e-commerce outfits in the US. No doubt it will have a trickle down effect here in Europe.

Total e-commerce sales amounted to $186.2 billion and a quarterly breakdown shows that Q1 2012 was the fastest quarter, with year-on-year growth of 17 percent. Growth in the second and third quarters hit 15 percent and it slowed down to 14 percent in the holiday quarter.

On the whole, E-commerce spending saw double digit growth for the last nine consecutive quarters. Sales in Q4 2012 hit $56.8 billion, an absolute record, despite the fact that it fell somewhat short of expectations.

“2012 was a year in which – for the most part – e-commerce continued to grow strongly, despite an uneven macroeconomic environment showing signs of recovery but also cause for continued concern,” comScore chairman Gian Fulgoni said in a statement. “With e-commerce growth rates consistently in the mid-teens throughout the year, it is clear that the online channel has won over the American consumer and will increasingly be relied upon to deliver on the dimensions of lower price, convenience and selection.”

The fourth quarter was also the first time e-commerce spending reached 10 percent of total US retail spending, excluding food, gas and auto sales. The top performing product categories in Q4 were digital content and subscriptions, consumer electronics, toys and hobbies, apparel and accessories, followed by books and magazines. Each category grew at least 15 percent compared to 2011.

comscore-ecommerce

Google buys Channel Intelligence for $125 million

Posted on February 7, 2013 by - Moving People, News

google-ICGoogle is continuously trying to improve its e-commerce business and its latest acquisition should give it a nudge in the right direction. The search giant bought e-commerce solution provider Channel Intelligence for $125 million in an all-cash deal.

Channel Intelligence is active in 31 countries and it offers a wide range of e-commerce services.

The company has been a partner of Google Shopping for years and the two outfits worked together on Return on Ad Spend (ROAS) and Product Listing Ads (PLA) products. In addition, Channel Intelligence offers a range of free services, including Facebook integration and product search widgets and an e-commerce back end, dubbed Shopping Engine.

Channel Intelligence announced the deal on its website, adding that all of its services will be available for years to come. The company has been around since 1999 and it tracks about 15 percent of all online transactions in the US. It is behind $2 billion in sales through referrals every year.

ICG group announced Wednesday that the transaction should be finalized in the first quarter of 2013. ICG is expected to realize $60.5 million in connection with the transaction.

“Building upon the perseverance and strong foundation laid by CI’s founder Rob Wight, I am extremely proud of the work we accomplished at CI,” said Doug Alexander, CEO of CI and President of ICG. “With the talent and hard work of the entire CI team, we successfully navigated a very complex marketplace, ending a record year that culminated in this very exciting acquisition.”

Wright said he is thrilled to see the recognition of CI’s value. He said the company’s vision was to simplify the online shopping experience and that he is very proud to see the vision executed to such a “great outcome.”

Mobile shopping apps only four percent of e-commerce revenue

Posted on February 1, 2013 by - News

smartphone-shoppingIn spite of the unprecedented smartphone boom, shoppers are apparently still reluctant when it comes to e-commerce apps.

According to a report compiled by Research2Guidance.com,  the vast majority of mobile shops made less than 5 percent of their total e-commerce revenue via the mobile channel.