By Christopher Taine, PR Manager at ACI Worldwide
Currently, mobility is a priority for many businesses, which comes as no surprise since this is one of the fastest growing markets. However, retailers need to adapt the principles acquired from traditional e-commerce and extended to mobile commerce to the customer experience and the operational model in order to be successful. And that includes adapting your payment methods.
Many texts have already addressed the options for optimizing e-commerce or the challenges faced by retailers while looking for growth. The idea here is to talk about the potential increase in mobility and the specific considerations that traders should be on the alert for when it comes to this.
The mobility opportunity for retailers
Today there are 8.6 billion mobile devices around the world, which equates to 1.2 devices per person. They are more powerful: the iPhone of 2016 is better than the iMac of 2006, they have similar resolution and fast internet connection. Approximately 80% of mobile device users in developing markets use a smartphone and analysts believe that 70% of the world's population will have a smartphone by 2020.
Consequently, the mobile market, which has exploded in the past five years, stands out in e-commerce. Today, mobile has more than 50% of e-commerce in the United Kingdom and China, 33% in the United States and more than 20% in European markets.
There are several similarities in desktop e-commerce, especially when driven by a mobile browser, but the mobile's unique format offers many other possibilities. EWallets increase payment security by authenticating all transactions with a password or by increasing the use of biometrics and other sensors. Mobile payments can be more convenient because they allow payments with just one click. Loyalty programs can be stratified into transactions, receipts can be scanned and eWallets will automatically be chosen as the most appropriate card for transactions.
Mobile apps for retailers optimize the shopping experience and improve conversion rates. While these apps are not exclusive to payments, the viability is usually based on their incorporation. Examples include mobility in self-check out so that consumers avoid queues or so they can check product prices - which also works as an advertising tool.
The importance of mobile e-commerce for the retailer is driven by different factors
1. Sector: Some sectors, including games, digital goods and travel are mobile in nature and tend to adopt mobile commerce. Vertical products, such as electronics, clothing and retail in general, are now seen with greater acceptance driven by omnichannel initiatives.
2. Buying behavior: Merchants who experience many low-value transactions tend to adopt mobile payment. A classic example is that of Starbucks.
3. Customer profile: Merchants with young customers have a higher demand for mobile services, as these consumers tend to adopt systems earlier and found mobile shopping more convenient than in a desktop e-commerce.
4. Adoption of Smartphones: Currently, smartphones are more capable and practical, which drives mobile commerce. In most European markets, smartphone owners are already more than 50% of the population, in the United States, 80%, and in South Korea, 88%. Mobile commerce is seen in markets dominated by the use of cell phones, but it is an SMS-centric experience.
Challenges and solutions with the mobile channel
One of the challenges of selling via mobile is the consumer experience. It is not just a matter of adapting the store to a smaller screen, but of dealing with design elements, pop-up windows, fixed-size iFrames and so many other elements that may not work on mobile devices and end up undermining conversions checkout.
Consumers are more distracted by the mobile checkout process, as they are usually on the move or doing several things at the same time. Apps for mobile devices are a solution in combating low conversion. They allow merchants to develop excellent brand experiences, in addition to enabling new functions (camera or biometric scanner) and encouraging the use of Apple Pay wallets. Either way, these apps have their own challenges. So how do you get users to download apps and keep using them?
For both an online store and an app, good design and an easy payment process are the key to effective commerce. The importance of these factors can be seen in the fact that retailers often focus on payment methods that do not require external validation factors.
Mobile devices create payment challenges simply because they work on a 15-inch monitor. Pages displayed incorrectly on mobile devices, complicated payment methods and pop-ups increase cart abandonment. You must have responsive pages and the ability to make payments with a touch. Retailers should adopt practical checkout tools, in addition to, of course, expanding payment methods.
Many texts have already addressed the options for optimizing e-commerce or the challenges faced by retailers while looking for growth. The idea here is to talk about the potential increase in mobility and the specific considerations that traders should be on the alert for when it comes to this.
The mobility opportunity for retailers
Today there are 8.6 billion mobile devices around the world, which equates to 1.2 devices per person. They are more powerful: the iPhone of 2016 is better than the iMac of 2006, they have similar resolution and fast internet connection. Approximately 80% of mobile device users in developing markets use a smartphone and analysts believe that 70% of the world's population will have a smartphone by 2020.
Consequently, the mobile market, which has exploded in the past five years, stands out in e-commerce. Today, mobile has more than 50% of e-commerce in the United Kingdom and China, 33% in the United States and more than 20% in European markets.
There are several similarities in desktop e-commerce, especially when driven by a mobile browser, but the mobile's unique format offers many other possibilities. EWallets increase payment security by authenticating all transactions with a password or by increasing the use of biometrics and other sensors. Mobile payments can be more convenient because they allow payments with just one click. Loyalty programs can be stratified into transactions, receipts can be scanned and eWallets will automatically be chosen as the most appropriate card for transactions.
Mobile apps for retailers optimize the shopping experience and improve conversion rates. While these apps are not exclusive to payments, the viability is usually based on their incorporation. Examples include mobility in self-check out so that consumers avoid queues or so they can check product prices - which also works as an advertising tool.
The importance of mobile e-commerce for the retailer is driven by different factors
1. Sector: Some sectors, including games, digital goods and travel are mobile in nature and tend to adopt mobile commerce. Vertical products, such as electronics, clothing and retail in general, are now seen with greater acceptance driven by omnichannel initiatives.
2. Buying behavior: Merchants who experience many low-value transactions tend to adopt mobile payment. A classic example is that of Starbucks.
3. Customer profile: Merchants with young customers have a higher demand for mobile services, as these consumers tend to adopt systems earlier and found mobile shopping more convenient than in a desktop e-commerce.
4. Adoption of Smartphones: Currently, smartphones are more capable and practical, which drives mobile commerce. In most European markets, smartphone owners are already more than 50% of the population, in the United States, 80%, and in South Korea, 88%. Mobile commerce is seen in markets dominated by the use of cell phones, but it is an SMS-centric experience.
Challenges and solutions with the mobile channel
One of the challenges of selling via mobile is the consumer experience. It is not just a matter of adapting the store to a smaller screen, but of dealing with design elements, pop-up windows, fixed-size iFrames and so many other elements that may not work on mobile devices and end up undermining conversions checkout.
Consumers are more distracted by the mobile checkout process, as they are usually on the move or doing several things at the same time. Apps for mobile devices are a solution in combating low conversion. They allow merchants to develop excellent brand experiences, in addition to enabling new functions (camera or biometric scanner) and encouraging the use of Apple Pay wallets. Either way, these apps have their own challenges. So how do you get users to download apps and keep using them?
For both an online store and an app, good design and an easy payment process are the key to effective commerce. The importance of these factors can be seen in the fact that retailers often focus on payment methods that do not require external validation factors.
Mobile devices create payment challenges simply because they work on a 15-inch monitor. Pages displayed incorrectly on mobile devices, complicated payment methods and pop-ups increase cart abandonment. You must have responsive pages and the ability to make payments with a touch. Retailers should adopt practical checkout tools, in addition to, of course, expanding payment methods.
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