Sep 10, 2013 Dave King
During the past few years alternative credit and payment solutions have grown in popularity. In particular, mobile transaction platforms appear to be entering the mainstream.
Data from comScore indicated that 2013 has been a successful year for mobile payment companies. The source reported that mobile spending hit $4.7 billion in the second quarter of this year in the United States. That was a 24 percent spike compared to the $3.8 billion spent during the same period a year ago.
In fact, the $10.6 billion spent on smartphones and tablets in the first half of 2013 accounted for 10 percent of all digital payments made in that period.
The trends are so positive for mobile payment proliferation that comScore predicted that more than $25 billion in mobile transactions will take place by the end of the year. However, it shows that businesses across all industries need to adjust to the new commerce dynamic.
"Any channel shift has the potential to be disruptive to established revenue streams, and it would appear that m-commerce spending has reached enough of a critical mass that key stakeholders must begin to address this new market dynamic today or risk losing competitive advantage," said Gian Fulgoni, chairman of comScore.
Retailers should support mobile
How retailers will take advantage of the mobile boom could determine their overall success in the coming years. A poorly configured mobile payment portal will certainly do more harm than good, so it's important for businesses to take a calculated approach to implementing the technology. However, they need to start taking steps to make their companies more mobile friendly, as many industries have already started to invest in the platform.
Marketing groups, for example, have increased their mobile ad investments recently, according to eMarketer. The source stated that just 2.1 percent of digital search ad funding went toward mobile systems in 2010. This year, the source estimated that mobile ads will account for 22.1 percent of spending, with that number set to top 59 percent by 2017.
Companies in all industries can take advantage of mobile payment solutions, from retailers to lenders. Allowing consumers to purchase products or make loan payments from their smartphones is an easy way to make transactions convenient. If configured properly, mobile payment portals could help businesses bring in more customers and increase their overall consumer retention rates.