In the most recent wave of retail technology, the push toward mobile payments is leading the way and could be poised to change the purchasing process as merchants and consumers know it. There is good reason for this, as smartphones and tablets are increasingly being used to perform a variety of tasks, which now include payment transactions. Recent research has found that the trend is expected to keep rising over the next few years and perhaps eventually replace traditional purchasing methods within the retail industry.

Next five years to be big for mobile payments

Retailers can expect mobile transactions to become mainstream in the very near future, according to a recent study by Juniper Research. Fierce Mobile Content cites the findings from this research, which anticipates that by 2017, the total value of mobile payments will reach $730 billion worldwide.

"We have already moved towards a multitasking, multimedia environment which offers brands the opportunity for far greater engagement with consumers than was previously the case," said report author Windsor Holden. "Mobile is increasingly being deployed at all touchpoints in the retail process – product discovery, product purchase, customer retention."

For the research, Juniper looked at companies and brands that currently operate within the mobile transaction landscape. This data, coupled with the expectation that retailers will lead the way for mainstream adoption, gave industry experts the expected numbers, states the source.

Another study by IBM found that in 2012's second quarter, mobile retail commerce experienced much success, while sales through social media fell. Customers who completed purchases with their mobile devices grew by 15 percent for retailers, and is anticipated to keep climbing.

Retailers need to offer speed with mobile transactions

Although the numbers for mobile payments are steadily increasing, retailers should make some considerations, writes Internet Retailer. Providing speed with mobile transactions should be a primary focus for companies, as shoppers could be turned off from a site or transaction that takes a considerable amount of time. This could even result in the consumer going to competitor, decreasing loyalty and revenue for the original company. The source recommends that businesses ensure their mobile payment systems are providing the speed, as well as the accuracy, that consumers are looking for (and expect) from their retailers.

This entry was posted by Retail Pro on Friday, August 10th, 2012 at 1:55 am .