Tag: mobile-commerce

  • Mobile Commerce to Greatly Impact Holiday Shopping Season

    IDC today announced the results of a new survey revealing that mobile shopping "warriors" (hyper-connected individuals) and mobile shopping "warrior wannabies" (moderately connected individuals) will account for 28% or $127 billion of the $447 billion the National Retail Federation (NRF) predicts U.S. consumers will spend this holiday season.

    The survey was designed to explore how consumers’ growing comfort with mobile commerce (m-commerce) and social media commerce (sm-commerce) will play out in the 2010 holiday shopping season.

    According to results, m-commerce and sm-commerce are giving consumers greater advantage as they engage retailers on their own terms – even inside the store – within arm’s reach of merchandise at the moment of their buying decision.

    "MSM-commerce introduces a new consumer shopping model which changes how consumers shop, not simply when and where they shop, as e-commerce has already enabled," said Greg Girard, program director, Retail Merchandise Strategies at IDC Retail Insights.

    "It is clear that MSM-commerce already has an influence on consumers’ perception of brand value and their shopping intentions. We believe the retailers with superior mobile and social media commerce strategies in place will have a decided advantage," he added.

    As revealed in the survey, mobile shopping warriors and wannabies represent the vanguard for the new age of m-commerce and, of particular interest, results suggest that the early maturity adult audience is an important part of this vanguard. Adults aged 25 to 44 years comprised nearly two-thirds of the mobile shopping warrior group while they comprised slightly less than half of consumers surveyed. In addition, adults aged 45 to 54 years were the most inclined to use their mobile information advantage; for example, asking for a better price to match one they find on their mobile device while in the store.

    For retailers, the impact of mobile shopping warriors will be significant this holiday season as the survey reveals, across the board, retailers’ m-commerce competence greatly influences consumer perceptions about the brand. Further, an easy-to-use mobile website significantly influences consumers, across all age groups, on where to shop this holiday season.

    Results also suggest that while the influence of social media outlets on buying decisions is growing, retailers continue to serve as the most important source of information on which consumers make their final purchase decisions. As such, retailers who have met the critical need for consumer-generated Web site content and easy-to-use product information will have the advantage this holiday season.

    "Consumers’ increased comfort with using their smartphones to go online anywhere combined with their plans to use them more in the 2010 holiday season signals the beginning of a significant shift away from the capacity of the store channel to hold sway over consumers as they move to a purchase decision," concluded Girard.

  • AT&T, T-Mobile and Verizon Wireless to Build National Mobile Commerce Network

    AT&T Mobility, T-Mobile USA and Verizon Wireless have announced the formation of a joint venture chartered with building ISIS, a national mobile commerce network that aims to "fundamentally transform how people shop, pay and save."

    Isis’ initial focus will be on building a mobile payment network that utilizes mobile phones to make point-of-sale purchases. By utilizing smartphone and near-field communication (NFC) technology to modernize the payments process, Isis intends to deliver new levels of competition and value to consumers and merchants.

    Thew company expects to introduce its service in key geographic markets during the next 18 months.

    Michael Abbott has been named as Chief Executive Officer of Isis. Formerly with GE Capital, Abbott is a veteran financial services executive with extensive experience in the payment and technology industries. "We plan to create a mobile wallet that ultimately eliminates the need for consumers to carry cash, credit and debit cards, reward cards, coupons, tickets and transit passes," Abbott said.

    Founding members, AT&T Mobility, T-Mobile USA and Verizon Wireless, collectively provide wireless services to more than 200 million consumers who will have access to the Isis service. Isis is working with Discover Financial Services’ payment network, currently accepted at more than seven million merchant locations nationwide, to develop an extensive mobile payment infrastructure for the joint venture.

    Barclaycard US, part of Barclays PLC, is expected to be the first issuer on the network, offering multiple mobile payment products to meet the needs of every customer.

    How It Works

    The new venture will enable contactless mobile payment and commerce services using near-field communication technology. NFC uses short-range, high frequency wireless technology to enable the encrypted exchange of information between devices at a short distance. The new system is being designed and built to include strong security and privacy safeguards.

  • Gartner: The Use of Mobile Fraud Detection in Mobile Commerce Environments is Imperative

    By year-end 2013, location information or profile information from mobile phones will be used to validate 90 percent of mobile transactions, according to Gartner.

    The research firm says that the rapid adoption of smartphones is forcing banks, social networks and other e-commerce providers to implement the kinds of fraud detection capabilities that have become mainstream with fixed-line computing.

    "Because of the improving browser experiences on smartphones, mobile commerce and transaction execution are set to increase rapidly," said William Clark, research vice president at Gartner. "We estimate that by the end of 2013, 12.5 percent of all e-commerce transactions will be mobile."

    "Enterprise applications must detect fraud in these mobile environments, but fraud detection tools available today that work in fixed-line computing environments don’t work well or at all in the mobile world," Clark said.

    "There are a number of methods that can be implemented to help enterprises detect fraud in the mobile space, but they are still in their early stages of development, and it will take until at least 2012 for them to transform from embryonic applications to technically mature systems that work easily and transparently across disparate mobile networks," he added.

    According to Gartner, fraud prevention methods available today to mobile applications include:

    Mobile device identification — This is enabled through a JavaScript on the server that the user logs in to, which captures whatever information it can get from the user’s browser and phone, depending on whether the user is using a browser or native application. If the application is browser-based, then the JavaScript application captures whatever information it can get from the user’s browser to uniquely identify that particular user’s browser and mobile device. If the mobile application is native and residing on the mobile handset, native applications can additionally gather the phone’s serial number and network card number. This will require opt-in by the user.

    Location of device — This is based on the phone’s location information independent of the browser (IP address), so the user does not have to have his or her mobile browser application open for this to work; the phone only needs to be turned on. Enterprises may want to check and correlate the location of the device relative to anything else they know about the user’s location through other systems they may interact with at the enterprise. For mobile phones, there are two architectures that are used to obtain location information: One relies on device information (e.g., using the GPS-API applications that the user must opt into); the other employs APIs provided through mobile network operators that don’t require the users to opt in to releasing this information.

    Some online fraud detection vendors are starting to tune their risk scoring and/or rule-based models specifically for mobile applications — For example, some vendors are looking at the mobile device itself, the location of the phone, and the behavior of the user inside the host application while transacting from the phone. This area is very new to the fraud detection vendors, as there is little mobile transaction experience to draw on in order to build effective risk models and scores that significantly improve on risk models that have already been built for fixed-line computing. It tries to combine some of the methods listed above, including mobile device identification and examining the location of the mobile phone in relation to other information known about the user and his/her location.

    Gartner estimates that 70 percent of the largest 20 global card issuers (who authorize more than 50 percent of all payment card transactions) will gradually adopt mobile context information to help detect fraud on fixed-line transactions, and that by year-end 2015, more than 15 percent of all payment card transactions will be validated using context-aware profile information.

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