E-Commerce to M-Commerce: A shift in payment innovations
30 Dec 2016
There was a time when people used phones primarily to reach out to others and stay connected. Today, however, it is used for everything else but that. Phones have transformed into cameras, music players, and minicomputers — all combined into one. This functional shift is a result of development in financial technology which, in turn, has led to mobile payment entering a new era of digital innovation. We can see a plethora of digital payments – online payment tools, mobile wallets, social media payments, and virtual currencies – across verticals.
Consequently, with users deviating from traditional E-Commerce payment platforms, digital payment patterns are fast-emerging as viable Fintech alternatives. For instance, by syncing payment details with the Uber application, transactions are processed automatically allowing users to take a ride without any cash.
So, to stay ahead of the game, businesses need to constantly innovate their payment offerings and provide user-friendly payment platforms that process transactions within seconds. Keeping these requirements in mind, organizations are offering innovative payment features that are redefining the M-Commerce landscape. Some of the emerging trends include:
According to Zinnov, India’s M-Commerce market is estimated to grow up to $19 billion by 2019. With new payment technologies such as Vodafone’s mPesa, mobile shopping is set to witness accelerated growth. Consumers can simply top-up cash value by linking their M-Wallets to bank accounts – similar to recharging their prepaid mobile accounts. Mobile shopping is also witnessing growth abroad with mobile devices accounting for 57% of all online shopping traffic in the US according to IBM.
From mobile-first to mobile-only:
Multiple leading M-Commerce businesses in India, such as Amazon, Flipkart, Jabong etc., are promoting M-Commerce by adopting the mobile-first strategy and launching native apps or application programs for users which are specifically designed to suit the mobile platform.
M-Commerce payment innovations:
Emerging payment innovations such as semi-closed mobile wallets, contactless wallets, mobile money services, virtual currencies etc. have the potential to drive M-Commerce growth further in India, much like what Alibaba did in China.
Rise of smartphones:
Increased usage of smartphones has also led to greater acceptance of M-Commerce services. With smartphones providing features beyond basic telecommunications, users are preferring to shop on-the-go. According to Zinnov, India is amongst the top five regions for Google Play Store with more than 1 billion people using mobile phones to interact and shop online.
Fintech ventures, the foundation of the Indian M-Commerce ecosystem, have been enabling cashless, on-the-go financial transactions with ease. From cab rides and movie tickets to paying utility bills, users can make payments via mobile apps and enjoy a seamless mobile shopping experience, every single time.
India’s progress towards becoming a full-fledged mobile-first country is helping hyperlocal product delivery and M-Commerce solutions gain traction as both promise instant service delivery.
Rapid growth for M-Commerce as opposed to E-Commerce:
According to a recent study, M-Commerce industry will witness a 42% growth rate as compared to 13% for the E-Commerce sector.
In a country where cash-on-delivery is the preferred mode of payment, mobile wallets such as Wibmo are enabling M-Commerce for widespread use. Additionally, app developers are installing financial service functions to mobile platforms and creating seamless M-Commerce ecosystems. In addition, deeper penetration of smartphones and increased awareness of IoT are boosting demand for secure M-Commerce apps.
As we can see, mobile commerce will continue to boom as more and more people use mobile phones on a daily basis. Clearly, with mobile phones becoming dearer than our lives, we’re sure M-Commerce is here to stay.