Research from Google among Swedish consumers – one of the world’s most tech savvy populations – shows that as many as 71% of respondents use their smartphone to visit e-retailers. But only 33% say they have actually bought something using the smartphone1.
This situation illustrates how underexploited the m-commerce opportunity is. According to a report from IMRG and Cap Gemini2, the traffic to e-retailers from mobile devices in the UK is increasing in a rapid, from 21% in Q2 2012, to 34% in Q2 2013. Only three years ago, the number was just 3%.
The Google study identifies several reasons why m-commerce is not catching on. There is for instance the obvious fact that the screen is quite small, so the potential consumer finds it difficult to view the merchandise he or she is considering buying, But the major obstacles have to do with concerns related to payment security and convenience. According to a study from DIBS3, security and convenience are indeed the two factors that matter the most for consumers when it comes online payments, and this seems to be even more profound in m-commerce. The Google study finds that 29% of respondents state that their decision not to buy from an e-retailer from their mobile device was due to concerns that card payments on a smartphone might not be secure enough. Addressing this concern must be a key priority for e-retailers.
Many e-retailers are in the midst of redesigning their shops for new platforms like smartphones and tablets. That will certainly solve a lot of problems. It will be easier to woe potential buyers away from the aisle of a bricks-and-mortar store, with better offerings of the merchandise considered, presented in a format that utilizes the possibilities of the consumers’ smartphone or tablet in a better way.
However, while amazon.com showed the way for e-commerce when they introduced ‘one click shopping’, e-retailers of today still need to work on ways to let m-commerce consumers pay in a way that they feel is safe, and with as little hassle as possible. Fully software-based solutions built for online bank payments are one possible solution now entering the market and should present an opportunity that e-retailers can ill afford to miss.
COMPANY DESCRIPTIONTrustly is a Swedish technology company developing and selling online bank payment services based mainly on Payment Initiation Services (PIS). Our payment products target both B2C and P2P payments online and on mobile. We currently operate in the Nordics and Spain and have initiated expansion to several other European countries. Trustly is a Payment Institution licensed by the Swedish Financial Supervisory Authority and holds a European Payment Services Provider permit in accordance with the Payment Services Directive. We have processed in excess of 12 Billion SEK in payments since we began in 2008. For more information please visit trustly.com.
About Carl-Henrik SompCarl-Henrik Somp joined Trustly in 2009. Since then, Carl-Henrik Somp has held several positions within the company. Carl-Henrik Somp manages overall operations and public relations at Trustly, with the overall goal of helping consumers make more secure payments and letting merchants leverage the benefits of the most modern payment technology.
Carl-Henrik Somp has always envisioned Trustly as one of the big industry players. Today, Trustly is growing rapidly and is becoming a well-known brand in the online payment industry and a lead innovator in modern payment technology.
Born in Sweden, Carl-Henrik Somp grew up in Trosa, outside the capital of Sweden, Stockholm. He earned a master’s degree in Management from the Stockholm School of Economics and also has a military background as Operations Officer in the Swedish Navy.
References:1) Our Mobile Planet: Sweden Understanding the Mobile Consumer2) Capgemini World Payments Report 20133) DIBS E-commerce index 2012
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