It wasn’t quite awhile ago until when PayPal was the primary online getaway for majority of the online marketplaces. Ever since, online marketplaces have been registering approximately 30-60% of their revenue from mobile phones, the need for setting up more online payment getaways has increased considerably. The betterment of mobile data coverage and the increasingly high usage of mobile smartphones, online shopping is becoming the next big thing in India. More and more online applications now provide customized checkout options to customers who either wish an online payment via internet banking, credit and debit cards or opt for convenient method such as cash on delivery. These are predominantly taking off barriers for mobile transactions.
As per Technopak’s E-tailing Outlook 2014, the key drivers for this trend are the mobile internet users and service providers who have now made 3G/4G data affordable. Considering this phenomena, the growth rate is expected to continue with the penetration of high speed internet which is light on the wallet. A large number of consumers in tier II cities primarily have internet access only on their mobile phones which enables these users to actively engage with e-commerce platforms.
Mobile wallets are one of the other key drivers that enable the user to add money to their online account and checkout by redeeming the same money while they checkout. This allows the user to checkout with their shopping cart items in case they do not have access to either their debit card, credit card or online banking. The consumer can thus shop at will.
Says, Pramod Saxena, founder chairman and managing director of Oxigen India, “In a country like India, where a majority of the population still doesn’t have access to banks but do have mobiles, mobile wallets are going to be of great advantage,”. Owing to this transpiration, online marketplaces such as Flipkart and Myntra have launched app based shopping discounts.
Following the tune, a lot of web retailers are now pushing their mobile app based shopping aggresively via promotions, discounts and a huge sale to woo customers. With free deliveries, mobile only shopping and in app discounts, such kind of shopping is being encouraged to a next level altogether.
Contradicting the market growth and the market figures of growth, a study conducted by Mr. Niranjanamurthy M, Assistant Professor Dept. of MCA, MSRIT, Bangalore, India shows that Data security is a key challenge that slows down the growth of m-commerce.
What is to be proven is if and when payments via mobile operators become a reality, shall we be ready and poised for the next boom?