M-commerce expansion fuelled by mobile ticketing transactions, study finds

Friday, July 16, 2010 - 14:02 by Graham Miller

M-commerce transaction volumes are predicted to grow substantially, with some $65bn globally likely to be driven by the use of mobiles for ticketing purposes alone by the year 2012, according to a study by Juniper Research.

In 2010, the revenue generated from mobile ticket sales is forecast to be roughly half this amount, so within just two years, the experts predict a doubling of transaction volumes, with live events, travel and sporting engagements all benefiting from consumers' increasing confidence in and use of mobile technology.

Ticketing is not going to be the only means by which M-commerce grows, as it is expected to be followed by mobile banking, mobile retail and the use of mobile phones to download and use vouchers on the high street.

Juniper Research's Howard Wilcox said that M-commerce would experience significant growth in all of its subcategories, with ticketing representing the most significant rise while shopping online and mobile banking are set to grow by between 30 and 50 per cent over the same two year period.

Experts warn that providing consumers with the ability to carry out simple, secure, safe shopping online from their mobile phones is essential, as a poor first time experience may deter a consumer from engaging in M-commerce in the longer term.

Amazon and eBay, both of which have established themselves as key online retailers on the desktop market, are already tipped for success with their M-commerce ventures, partly because they can promise safe shopping online thanks to their long standing reputation amongst UK consumers.

The report states that financial institutions will soon find that a mobile banking service is essential to win and retain customers, because the largest organisations are already making moves into this market and consumers are looking for the convenience offered by mobile commerce.