Global Mobile Commerce Market - Segmented by Transaction type (M Retailing, M Ticketing/Booking, M Billing), Payment Modes (Near Field Communication (NFC), Premium SMS, Wireless Application Protocol (WAP), Direct Carrier Billing), and Region - Growth, Trends, and Forecast (2018 - 2023)
Global Mobile Commerce Market is expected to register a CAGR of 24.41%, during the forecast period (2018 - 2023). The scope of the report is limited to Transaction Types offered by major players, which involves M Retailing, M Ticketing/Booking, M-billing. While the Payment Modes considered in the scope of the report include Near Field Communication (NFC), Premium SMS, Wireless Application Protocol (WAP), Direct Carrier Billing.
Many of the payments have been mobile compatible and applications for the various kinds of activities such as funds transfer, bill payments have been deployed, which further aids to the growth of mobile commerce globally. Advancements in integrated electronics enable availability of many kinds of technologies, like broadband internet, in Handsets and the supporting service networks. All these developments open up the possibility of offering the user many services of unprecedented nature. The goal of all the services in one way or the other has to be generation of revenues. This represents an ever-increasing scope of Mobile Commerce or m-commerce as a subset of the more generic Electronic Commerce or e-commerce, which in general too has been booming with the increasing popularity of the Internet.
Growth of Smartphones and Internet Penetration Drive the Growth Of M-commerce
The overall structure of the IT industry is being reorganized, and competition in the industry is being expanded and diversified. The introduction of smartphones has spurred the creation of limitless IT-related markets such as the e-book, tablet PC, and net book markets. The growing internet penetration among many developing countries is also one of the prime factors for the growth of the market. Many developing nations have now adopted the use of m-payments services online wallets etc. services, such as m-wallets have been popularized by many governmental programs, such as demonetization as an example. This has increased the revenue traffic in the market for e-commerce.
Payment by SMS is One of the Earliest Modes of Payment
Premium SMS has been fueled by the evolution in Mobile Media. The use of premium messages has also been seen for collecting donations or funds from a target group. This is a very simple and specific payment method. Nonetheless is very lucrative for both the Telco’s and mobile content vendors. Depending on their cooperation agreements, the revenues can be shared as high as by 50%. SMS has recently been deployed in many countries as an access to m-wallets too. M-wallets initially require registration at the providing company and then funds are prepaid into these accounts. The User can then use SMS to transfer the money around, pay bills or make donations. In some cases the m-wallets can be associated with telco billing, thus foregoing the requirement of initial registration and pre-payment of funds. Hardware requirements for the use of SMS is extremely low; the service itself is incredibly cheap all across the world.
North America is one of the highest Market for m-commerce.
M-Commerce is thought to be the next big phase in technology involvement following the Ecommerce era. However, its adoption and level of use is low in the United States compared to other nations such as Sweden and Japan. Many major players are also present in United States and the region has high internet penetration rates, which aid to the growth of this trend. The growth of smartphones and other technology, such as wearables has also been a contributing factor for the growth of smartphones on the region. On the contrary there has been a growth in the number of cyber-attacks in the region, which could slow the growth of m-commerce in the region.
Key Developments in the Market