Purchasing via mobile to reach $200 billion in 2012
Juniper Research forecasts that the value of digital and physical goods that people buy with their mobiles will reach $200 billion globally by 2012, compared to less than $100 billion today. The study, Mobile Payments for Digital and Physical Goods, found that digital goods include entertainment and tickets, while physical goods include groceries, gifts and books. This global market sizing report focusses on two major sectors within the mobile payments industry: digital goods payments, like mobile entertainment such as a music track and SMS/barcode ticketing, and physical goods payments, like mobile purchase of almost any consumer product such as a book or DVD using mobile internet or an application.
Juniper Research noted that the purchase experience has been enhanced by improved mobile commerce transaction processes due to faster mobile networks, more powerful devices and much more user-friendly smartphone apps. Amazon Payments has introduced payment-processing tools for mobile devices, enabling smartphone users to buy with one click.
However, the Juniper report also underlined that retailers and merchants need to communicate the cost of transactions clearly so that people are not discouraged from buying by mobile. Not surprisingly, the frequency of physical goods purchased will be higher than average in developed regions such as North America and western Europe. Brands, retailers and merchants have an opportunity to increase their revenues through highly targeted marketing campaigns, using apps and mobile web payments as a convenience play for users.
Report author Howard Wilcox said: “Our research showed that the purchase experience has been enhanced by improved mobile commerce transaction processes due to faster mobile networks, more powerful devices and much more user friendly smartphone apps. Amazon Payments for example has recently introduced payment-processing tools for mobile devices, enabling smartphone users to buy with one click.”