Mobile purchases to reach 53 billion by 2016

E-commerce

by | 17 February 2014

About 80% of the purchases would include digital content and mobile ticketing solutions.

The number of purchases through mobile devices is expected to almost double from 27 billion in 2013 to more than 53 billion per annum by 2016, according to a new report.

According to a report from Juniper Research, about 80% of the purchases would include digital content and mobile ticketing solutions.

Analysts believe that with the increasing number of OTT (Over The Top) storefronts introduced direct carrier billing solutions to supplement credit/debit card payment facilities, the number of transactions would grow significantly over the years.

The storefronts that have rolled out direct carrier billing capitalise from younger generation customers and unbanked users for the first time, the report revealed.

There is also a spike in paying users, frequency of purchase and average transaction value in storefronts which have already introduced direct carrier billing solutions.

The developing market in Indonesia has seen the sharp rise in storefronts, with carrier billing now accounting for 80% of transactions.

Despite the huge opportunity that carrier billing offers, a number of network operators - particularly in Europe - remain worried about the implementation.

The report author Dr Windsor Holden said these concerns revolve primarily around any fall-out from bill shock.

"Give the ease of purchase from carrier billing, consumers might argue that bills were run up inadvertently, or that their children had borrowed their handset and made the purchases. The fear is that customer services departments could be swamped," Holden said.

The report also added that the retail spending through mobile devices is expected to reach $700bn by 2018, accounting for 30% of all eRetail.

The analysts advised that the storefronts should ensure that their billing platform enables carrier billing through PCs and TVs, given the increased transition to a multiscreen environment.

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