Expert: Mobile commerce changing the way consumers look at money
Speaking at a recent MoneyLife Foundation seminar, Dewang Neralla, director of Atom Technologies and co-founder of Financial Technologies, told audiences mcommerce is becoming a primary method of performing monetary transactions. He said mcommerce is growing by 100 percent annually and anticipates exponential expansion for the industry in coming years.
As mcommerce technologies become more pervasive, they will change the way consumers look at money and manage their finances, Neralla explained. This will alter the way consumers approach money transfers and payments, especially as new systems for security are developed. Neralla said mobile technology is shaping the world's future because users are able to leverage complex applications through advanced smartphones. As a result, security systems will be developed and traditional systems for financial transactions will be overthrown by mobile devices, he said.
"From the era of cash-based transactions, we moved into a period where checks replaced cash, and then credit and debit card payments took over. Now, mobile phone transactions seem set to change everything. It is ubiquitous, has multi-purpose functionality with low adoption hurdles, is highly interactive and provides security as well," Neralla said.
According to Neralla, consumer interest in fast, convenient and intuitive shopping, banking and payment systems are creating demand for mcommerce. By using smartphones, consumers can deploy simple, but powerful commerce tools to manage their finances. This is giving the customer more freedom to purchase goods and services at their convenience, thus improving efficiency for merchants, banks and other businesses, he explained.
Currently, mcommerce is growing fast, but still on the brink of an explosion in adoptions. Neralla explained consumers are still working to change their mindset to seriously consider mcommerce options. The unfamiliarity with the technology creates a perception of security issues and unreliability, making it difficult for mcommerce to achieve mainstream adoption. However, Nerall said technological and security improvements are combining with the pervasive deployment of smartphones to bring consumers closer to mcommerce acceptance. As a result, the quick, consistent rate of growth is likely to be disrupted by an mcommerce boom within the next few years.
Mcommerce systems could be close to that sudden boom, as eBay recently reported the greatest day of mcommerce sales in its company history. Recently, eBay celebrated its Mobile Sunday shopping holiday, in which the organization generated 38 percent more revenue than in its previous record-holding date, this year's Cyber Monday event. Overall, eBay generated more than $13 million in mcommerce revenue on Mobile Sunday.