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Mobile Commerce Trends 2020

Posted by Marc Gasser | 19-Jun-2020 09:27:58

By now, your website and online shop should be accessible on mobile devices. However, this does not automatically mean that your company is ready for mobile commerce. As the figures from eMarketers show, you could miss out on a lot of sales.

Only 12% of consumers find shopping on the mobile web convenient. So there is still much room for improvement. More importantly, the use of mobile phones influences our purchasing decisions, even if we are in a stationary store. A third of our purchasing decisions are influenced by the search for additional information about a product via our mobile device.

Mobile Commerce Studie

According to eMarketer, mobile commerce accounted for 52.4% of total e-commerce revenue in 2016. 

This year, global m-commerce sales are expected to reach a new high of CHF 2.32 billion and account for 67.2% of total e-commerce sales

What effect will 5G have?

5G, which will not appear on any scale until 2020, will affect investments in media and advertising technology.

What will happen in the mobile video sector in 2020?

Many of the major platforms will focus on high quality video shows for a mobile audience. This will increase the demand for vertical video. Video advertising will also become less skipable and more interactive.

How will artificial intelligence (AI) influence mobile advertising?

It is difficult to limit the impact of AI to a few areas. Three important manifestations will be: personal assistants, the intelligent design of the customer's journey towards purchase and Augmented Reality (AR), especially with regard to visual search.

The role of personal assistants could be the most important, as tools such as Siri, Google Assistant and Alexa will connect the mobile phone more deeply with the rest of our device ecosystem.

Mobile Commerce Development 2020: Facts and Figures

What is mobile commerce?

Mobile commerce, also known as m-commerce, comprises all financial transactions that are processed via a mobile device. It is a further development of e-commerce that enables people to buy and sell goods or services from almost anywhere, simply mobile.

While M-Commerce covers a wide range of transactions, here we categorize two types of M-Commerce:

  1. Mobile Shopping: Includes all online shopping activities. Here mobile-optimized websites, dedicated apps and social media platforms are especially important.
  2. Mobile Payment: Describes contactless payment processes that take place via the mobile device. The payment itself can take place in an online shop as well as at the POS in stationary retail. An additional variant of mobile payment are peer-to-peer (P2P) payments from one person to another via smartphone.

Mobile shopping: the smartphone is deeply integrated into the daily routine

The latest report from Adobe Digital Insights looked at the impact of connection speed, geographic location, screen resolution, and economic infrastructure on our online behavior.

5G wireless standard

There is a direct connection between the loading times of online shops and the sales achieved. Based on these results, Adobe experts have now calculated how the upcoming 5G wireless standard could affect mobile commerce.

According to their estimates, the expansion of technology in the USA alone could increase sales in this area by $11.8 billion from 2021 - and that annually.

In the United States, the number of visitors using smartphones is growing. While this segment has grown by almost 90 percent since January 2015, the numbers in the desktop and tablet segment have declined significantly. Although desktop visitors are even more valuable in terms of revenue generated, the gap is narrowing.

Good usability demands mobile-first

According to Adobe, page views on smartphones have become shorter in the last three years. The company sees this as an indication that users are now accustomed to the most efficient page layout.

Website operators must therefore take care to remove as many unnecessary operating steps as possible if they do not want to lose visitors' interest early on.

High income, high resolution

Another interesting observation concerns the pixel density of smartphone displays: According to the Adobe study, there is a correlation between the resolution of a smartphone display and the revenues it generates.

However, smartphones with higher resolutions usually cost more. As a result, they are likely to be particularly popular with people on higher incomes.

Mobile payment: making shopping easier

TWINT

TWINT is the quick and easy payment method for your online shop: Simply scan the QR code with the TWINT app and pay effortlessly. Also for mobile shopping, on the mobile phone simple payment without entering the code is possible.

The solution developed by the Swiss financial institutions is the ideal entry into the world of mobile payment: TWINT can not only be used in e-commerce, but also at the payment terminal directly at the checkout.

Mobile Payment Studie Schweiz 2018

Alipay 

China's leading mobile payment solution Alipay 支付宝 is used daily for more than 100 million transactions around the world. Alipay is the preferred mobile payment app, primarily for customers from the Asian region.

WeChat Pay

One of the largest mobile payment services should soon be available in Switzerland. WeChat Pay (微信支付) is an integral part of the chat app WeChat (微信), which is widely used in China.

Similar to TWINT P2P, WeChat Pay allows you to transfer money, shop online and pay in shops using a QR code. The connection works with a credit card or directly to an account.

Invoicing via cell phone provider

Swisscom customers with a mobile subscription or a prepaid number can pay for their purchases online via their mobile phone bill or with their prepaid credit.

Large online stores such as Apple, Google Play Store, Netflix or Sony Playstation Store thus accept payment via the mobile phone bill.

Easypay

Other online shops or apps support the purchase via Easypay. To do so, select the payment method "Easypay" and complete the purchase on the Swisscom page to which you will be redirected. You will then receive an SMS confirmation for the transaction. 

Bestellung per SMS/MMS

Value-added services, i.e. information and entertainment services with costs, such as weather information, news, ring tones or games, can be ordered via SMS/MMS or via the Internet. Billing is also made via the mobile phone bill or is deducted directly from the prepaid credit.

Topics: E-Commerce

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