The Future of Mobile Commerce

  March 5, 2014       Kim Hellbom

Our Mobile app specialist – Kim Hellbom recently attended a breakfast briefing hosted by Stragey Eye Digital Media. When an event is about Mobile, it’s destined to be interesting. Here’s a few takeaways from the session:

Mobile Commerce is currently the fastest growing retail channel, with USD1.2bn VC investments in 2013, the sector has undergone a huge leap from $561.4 in 2012, according to data presented by StrategyEye Digital Media at their breakfast briefing on 29th of January at the Century Club in London.

The morning started off with StrategyEye presenting various investment data and trend predictions on the mobile commerce sector. It was interesting to see that within the mCommerce sector, taxi apps were the biggest winner, receiving a total of £467m in investments. Uber, the cab service accounted for most of this with £360m. Here is a full breakdown by sector:

  • Taxi Apps: $467m – 11 deals
  • Mobile Payments: $342m – 44 deals
  • Marketplaces: $306m – 36 deals
  • Mobile Food/Delivery Apps: $48m – 6 deals
  • Mobile Deals: $34m – 8 deals

I was surprised to find out that there were only a small amount of deals happening within the messaging apps sector in 2013. Tom O’Meara, Head of Editorial and Analysis at StrategyEye, predicted commerce within messaging apps to see a growing role in 2014.

With Facebook’s recent acquisition of the messaging app WhatsApp, the tech giants are sending out a clear message: Instant messaging is where the future lies. For Facebook it was more of a “Connect or Die” situation as The Verge puts it. Facebook has been losing users in the recent months even though their revenue has been going up. If Facebook didn’t aquire WhatsApp, somebody else would have. That someone could have been Google, who reportedly also made an offer on WhatsApp.

In Asia, commerce within messaging apps have been growing at a tremendous pace. Last November the Chinese phone maker Xiomi sold 150 000 units of its x3 smartphone in only 10 minutes through Tencent’s 272-million-user-strong Chinese WeChat messaging app. Line, another Asia based messaging app reported a total of 330 million registered users in January 2014, while the good old mighty WhatsApp still leading the pack with 450 million monthly active users.

Jens Munch from iZettle told us how 80% of transactions in EU are still happening in cash and that 70% of the people in the UK prefer to pay with cards. iZettle is a Swedish startup that provides a cheaper way for retailers to accept cards as a payment method. Customers can choose to pay with their normal credit or debit card and get their receipt printed directly in the shop or sent via email. The retailer in return, are provided with a back-end platform with analytical tools, helping them follow their customers buying habits. Jens pointed out that it is the data on how people buy that is important, and describes it as “the holy Grail of mobile payments”.

Michael Rolph from Yoyo, a startup providing customers with an easy way to pay for their shopping by scanning a product’s barcode using a mobile app, closed the morning briefing saying “Customers are still more willing to pay by cards and cash rather than through mPayments apps, as people are creatures of habit”.

Full event summary by StrategyEye click here

makepositive have a wealth of experience in developing cutting edge mobile apps and can help you take your business or initiative to the next level. We also build custom apps on the Salesforce platfrom – Click here to view our Salesforce custom apps

Contact us today to discuss your mobile app development requirements.