Technology companies are being urged to combine forces in order to guarantee the mass adoption and the success of m-commerce.
According to the M-Commerce Comes of Age: Collaborate to Succeed report released today (14 September) by management consultancy firm, Booz & Company, technology advances and changing user behaviour indicate that mobile phones will replace physical wallets in developed markets faster than anticipated.
However, in order for the mobile wallet proposition to achieve mass adoption companies must collaborate accordingly to make sure it meet the needs of all those in the m-commerce ecosystem including consumers, retailers, advertisers and banks.
The report claims that, m-commerce will transform the customer experience of both online and high street shopping and that companies are now recognising the potential benefits of providing m-commerce services.
Booz & Company partner Michael Knott said: ‘Our latest report highlights that while many companies are seeing m-commerce as a strategic priority, few will find themselves in a sustainable, value-accruing position. For most, the only way to win at scale is through collaboration. It is through collaboration across all elements that a mobile wallet proposition will come to the fore - one that can revolutionise the customer experience, facilitating a much deeper and more sustainable relationship with the end consumer.’
This report comes just days after UK mobile operator Three complained to the European Commission about being excluded from the ‘UK mCommerce joint venture’ that rival mobile network operators – Vodafone, 02 and Everything Everywhere are attempting to form.
The joint venture, announced on 16 June 2011, will aim to bring together the expertise and technology of the three operators onto an open platform that will provide advertisers, retailers and banks with a one-stop shop to book advertising space, create campaigns, provide offers, coupons and loyalty cards to be held on mobiles and redeemed in shops.
Knott added: ‘We believe that collaboration is necessary to create a workable proposition in most markets. In each country, it is still unclear what this proposition will consist of, or who will create it. What is clear, however, is that it is unlikely to be driven by a single company in isolation.’
Meanwhile, the report also claimed that the next year and half will be critical time in the evolution of m-commerce as a variety of players such as Google, eBay and Visa strive to achieve credible scale. Booz & Co predicts that digitisation will add between $12trn and $15trn to the global economy.