According to a recent study conducted by SAP, consumers in India are leading the demand for mobile commerce services, with 97 percent of users asking for more mobile interactions with retailers and businesses including telcos and banks, among others. Over 65 percent of the users feel mobile is the convenient way to make transactions, the report highlights, leading to a greater consumer adoption in this segment.
Another reason behind the surging popularity of mobile commerce in the country is the increase in the internet penetration with 63 percent of consumers accessing internet on their mobile at least once a day.
Mobile is going to be the next big thing in the retail and startup industry of India believes Rajesh Sawhney, founder at GSF Accelerator. Few of the most prominent factors driving the growth of mobile commerce in the country include easy affordability of mobile devices, on the go accessibility, easy mobile payments and rising mobile internet connectivity, among others.
Talking of mobile payments, according to MasterCard Mobile Payments Readiness Index (MPRI) India ranked 21st among 34 countries with the score of 31.4 on a scale of 100. The index also points out that only 14 per cent of Indian consumers are familiar with mCommerce transactions, with 10 per cent being familiar with POS transactions. Prepaid mobile recharge, DTH recharges, ticket bookings (movies/travel) are among the fast growing transactions in mobile banking.
In addition to some promising figures mentioned above—the very fact that half of the Indian households are still unbanked including 42 per cent holding at least one mobile phone—the reality of Indian population opens a great opportunity for mobile phone industry and financial institutions to galvanize mobile commerce services in India.
No doubt, the mobile ecosystem in India possesses a much sought potential in the field of retailing. With over 930 million existing mobile users in India, it is believed that mCommerce will surpass eCommerce in India. But the key question here is when, how and is it going to the be deciding factor for which retailer wins the race of being at the top?
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