Mobile commerce offers benefits for retailers, though some still hesitant
Smartphones and tablets are drastically changing the commercial landscape, as consumers use these products to purchase services and goods. While in-store and online shopping is still popular, these mobile technologies are providing convenience for customers to quickly and efficiently buy the items they want. For this reason, industry experts believe that the mobile payments trend is on the verge of becoming mainstream in the American marketplace, and many retailers are being encouraged to implement solutions that allow them to accept these purchases. However, it seems as though the adoption is soon to be widespread, some retailers are still hesitant when it comes to fully integrating these systems.
Merchants cautious about mobile payments
Retailers can adopt applications and solutions that allow them to process and accept payments from consumers who are using smartphones and tablets, whether it's in stores or from remote locations. However, hese initiatives cost money, and some businesses are hesitant to buy systems that they are not even sure will see much success, as the trend is still developing.
A recent survey by Forrester research, in 2011, 50 percent of merchants stated that they spent less than $100,000 on smartphone apps and solutions for mobile engagement, including purchasing options for shoppers, reports Retail Customer Experience. Nearly three-quarters said they spent less than that amount on tablet systems. However, things may be looking up for mobile payments, as retailers plan to spend an average of $207,000 on mobile initiatives. This represents a sharp increase from the average amount of $55,000 in 2011.
Merchants stated that there are several challenges that they face when deciding whether or not to adopt mobile systems. The inexperience with mobile applications and design is an aspect that many retailers face, along with budget concerns for maintaining and improving these programs.
"Retail executives are taking a measured view of the immediate benefits of these efforts – in part because of the myriad of challenges that must be considered when investing in mobile for their company," said Forrester vice president and principal researcher Sucharita Mulpuru.
Retailers encouraged to mobile payments adoption
However, merchants are being encouraged and pushed by industry experts to implement mobile solutions, reports the Wall Street Journal. Retailers could lose out to competition if they don't act quickly. On the other hand, the solutions they adopt should be effective and easy-to-use for customers, which can increase revenue and even consumer retention for businesses.
