A brief overview of the growing mCommerce market, its characteristics and impacting trends. Our analysis looks into different segments of the industry: App-based services, On-Demand Services, Marketplace, Mobile Retail, Retail Enablement and Mobile Payments, and provides overall predictions for the future of the industry.

1. mCommerce

3. Mobility
✓ Mobile communications
✓ Scheduling and coordination
Location-sensitive
✓ Travel navigation
✓ Local tours
✓ Locating local services
✓ Locating moving objects
Time-critical
✓ Short Message Services (SMS)
✓ Time-critical information
✓ Emergency services
Personal identity
✓ Personal identification
✓ Electronic payments
✓ Personalized location-aware
advertisement
✓ Language-specific services
Special market niche-targeted
✓ Demographic segmentation
✓ Country segmentation
The Characteristics of mCommerce

4. The mCommerce Market
• Global mobile transaction volume and
value averaged at 42% annual growth
between 2011 and 2016, and the
consultancy forecasts a market worth
$617 billion with 448 million users by
2016.
• Worldwide mobile payments will reach $1
trillion by 2017, including all mobile
commerce components: payments,
shopping and transfers.
The mCommerce market is poised for good growth prospects with future investments due to increase in the smartphone,
tablets, and other mobile devices. With the fast moving internet technology and increasing growth in the smartphone market, the
world is becoming closer in terms of communication simultaneously bringing retailers closer to their customers. The mCommerce
market is experiencing new innovations from major mobile and technology players.
Number of mobile payment users by region from 2009-2016

5. The Unique Advantages of mCommerce
• Low development costs of a mobile
website can create a new sales channel
and drive more consumers directly to a
business
• In-app payment transactions does
not require third-party payment
gateways and are hosted by the
platform itself
• Reaching the widest possible
audience with your digital marketing
due to an ever-increased number of
consumers using mobile devices
• Cross-media integration, which is
easily tied into other advertising media
• Viral marketing potential, as
consumers can forward messages
• Instant, adaptable, and easily
monitored communication means
you can send single or bulk messages
from anywhere, anytime, with
immediate tracking and feedback
• The ability to target a large active
consumer group by specific
demographics
• Cost efficiency because of low
production and distribution costs, and
additional revenue from replies to
promotions and competitions
• A direct link to consumers through
24-hour billing/sales/service/assistance

6. mCommerce Segment Analysis
The mCommerce ecosystem falls
into six primary categories
Mobile
Payments
Retail
Enablement
Mobile
Retail
Marketplace
On-Demand
Services
App-Based
Services

7. Mobile users have paid with
45% A scanned
QR/Barcode
37% NFC24% A mobile credit
card reader
22% A mobile
peer-to-peer app
Segment: Mobile Payments
Mobile Payments companies are those providing mobile payment infrastructure,
mobile point of sale systems and direct mobile payment solutions.
This is a challenging space, characterized by razor-thin margins, large capital
requirements to achieve scale, and fierce competition from credit card companies
and PayPal.
Given how difficult it is for payment companies to reach the scale required for an
IPO, it’s also critical for entrepreneurs to keep M&A opportunities open to their
companies as an exit option.

8. Types of Mobile Payments
• In-App Payments
• Mobile Point of Sale (Mpos)
• Online Payment Service
• Mobile P2P Transfers
• Bluetooth Low Energy (BLE)
• Near Field Communication (NFC)
Segment: Mobile Payments
Analysis
• Make mobile payments a feature of a
larger platform.
• Use mobile payments to offer a better
deal and experience.
• Use mobile to make transaction easier

9. Segment: Retail Enablement
Retail Enablement companies facilitate mobile-based retail transactions by helping potential customers discover items they want to
buy online (contextual commerce) or by helping them find offers offline (in-store marketing, mobile couponing, and location-based
offers).
Most of the companies in this
category depend on location
tracking and/or push
notifications to present the right
customer with the right offer in
the right place at the right time.
Winning is all about engaging
with users intelligently to
establish habit-forming
behaviors without being
intrusive or annoying.

10. • Mobile Sales Enablement will
change the way organizations
do business.
• Social media will become
increasingly important for
customers.
• Leveraging technology will
play an active role to engage
with customers.
Segment: Retail Enablement

11. Segment: Mobile Retail
Mobile Retail companies extend web-based retail platforms to mobile or build mobile
apps to sell goods to customers through smartphones and tablets.
The four survival strategies for mobile retail can all be improved by leveraging
advantages unique to mobile platforms:
● Proprietary selection,
● Proprietary pricing,
● Proprietary experience,
● Proprietary merchandise.
That being said, the current set of breakout companies
are focused most on differentiated experiences.
These companies are shifting the customer experience by
embedding natural smartphone services
such as picture taking and messaging.

12. THANKSGIVING BLACK FRIDAY SATURDAY SUNDAY CYBER MONDAY
Retails sites visiting peak in 2015
• Capture insights from
customer behavior for precise
retargeting
• Drive up customer lifetime
value with complementary
product suggestions
• Re-engage customers when
they’re ready
Segment: Mobile Retail

13. • Online marketplaces have no offline component
• Companies can bolt on community, once the commerce engine
is going
• It’s all about the technology, not the service
Segment: Marketplaces
Marketplace companies facilitate transactions between buyers and sellers of goods or services either on mobile as an extension of
web-based marketplaces or through a mobile app. The key to any marketplace is achieving liquidity. Some marketplaces that involve
local, time-sensitive or untethered transactions have gone mobile-only, recognizing their platform is fundamentally better on
smartphones.
Winning in this category is all about acquiring buyers and sellers cost-
effectively and matching supply and demand efficiently to make
transactions as frictionless as possible.

14. Segment: On-Demand Services
On-Demand Service companies provide services to buyers in a short timeframe through vertical integration or aggregated
supply. Smartphone features like location tracking and push notifications have made these services possible.
Many On-Demand Services function as utilities. This means that winning in this category is all about price and
convenience, driven by who has the most scale and the best algorithms governing vehicle dispatch, delivery routes, and
fulfillment.

15. Instant gratification
✓ Delivers ease and simplicity
✓ Low cognitive energy employment
Massive economic restructuring
✓ Meeting excess demand with idle
resources
✓ Integrates online to offline market
✓ Organization of freelance labor
Segment: On-Demand Services
Improved purchase funnel
✓ Unifies all consumer activity on
mobile
✓ Reduced user drop-offs with one tap
sign-in
✓ Offers seamless experience
App discovery within this vertical
✓ Emergence of high potential business
ecosystem
✓ Capitalized on hyper-specific services
space
✓ A channel for customer acquisition

16. • Be visible to customers at all times
• Create a direct marketing channel
• Provide value to your customers
• Build brand and recognition
• Improve customer engagement
• Cultivate customer loyalty
App-Based Service companies provides services to customers entirely within a native mobile app. Given that users
experience these services immersive on their smartphones, designing an intuitive user interface and seamless user experience is
crucial to success.
Emphasis should be on accessibility, engagement, and retention, and take advantage of the digital nature of their products to
conduct low-cost experiments, continuously refining their products to optimize their conversion funnel. Cumulatively, these
optimizations translate into customer delight and more attractive economics.
Segment: App-Based Services

17. Optimizing mCommerce Strategies
• Simplification of the purchase funnels -
make the purchase in only a few steps
• Multiple Screens - consumers rarely make
linear purchases on mobile, by understanding
the journey to mobile purchases we can design
a mobile experience
• Mobile Exclusives - create incentive with
mobile advantages, promos, deals, or coupons
only offered through mobile interaction
mCommerce with Optimized Experiences

18. Optimizing Omni-channeling
Whether they're opening promotional emails on their smartphones,
contacting companies via social media apps or visiting mobile
websites, customers expect seamless and easy interactions with
brands via mobile devices. A company's ability to optimize the
customer experience across all channels will drive its mCommerce
success
Omni-channeling
Omni-channeling is all about following customers through every
channel. Omni-channeling delivers a personalized experience for
individual customers. Companies will be investing more time
developing Omni-channeling strategies for mCommerce.
mCommerce with Optimized Experiences

19. Many of today's small businesses are eager to build their own branded mobile apps. While these apps aim to drive
customer engagement and sales, the costs often outweigh the benefits in terms of conversion rates.
Optimizing mobile conversions
• Apple Pay is only available to iOS users, meaning
catalogers will need to consider other solutions such as
Google Wallet if they want to be inclusive of Android users.
• Another level of ease and convenience will be brought to
mobile. as more catalogers embrace responsive web design
• Catalogers will need to move to implement one of these
forms of payment to ensure they are optimizing the
interactions and conversions of mobile visitors.”
mCommerce with Easier Mobile App Conversions

20. Trends
Physical and online worlds will continue converge
Whether it’s in-store-first
technologies like beacons or
online-first services like curbside
pickup, it’s clear mCommerce
will leverage technologies
across the digital and physical
channels to offer their
customers the best of both
worlds in one seamless
experience.

21. Social commerce will remain hot, but will buy buttons deliver?
• In 2015, the top 500 retailers earned $3.3
billion from social shopping.
• Social shoppers are spending more money online
than ever before
• Social-driven retail sales and referral traffic are
increasing at a faster rate than any other online
channels.
• 2015 was a big year for social commerce, with the
launch of buy buttons on Twitter, Pinterest,
Instagram and Facebook.
Given the importance of social in terms of both traffic and revenue to
mCommerce sites, social buy buttons - and whether they gain a
foothold with consumers or not - will be an important trend to watch in
the coming year.
Trends

22. The mobile web will continue to outpace apps
• Over 85% of mobile time is spent in apps. However, across industries, the web drives 2x the site traffic of apps. In fact, of the
top 30 U.S. retailers only two - Amazon and Walmart drove more than half of their visits via their apps.
• As for revenue, only about 20-30% of a retailer's mobile sales came from their app, according to Forrester Research.
• Apps play a key role in retailers’
mobile strategies, particularly for
their most loyal customers.
• Because of Google App
Indexing surfacing relevant app
content in mobile search, traffic to
apps will surely increase in 2016. In
fact, already 40% of Android
searches turn up app-indexed
results.
Trends

23. Consumer expectations will drive retailers to focus on mobile moments
This “mobile moments mindset”
presents retailers with unprecedented
opportunities to engage their customers
on mobile. Whether consumers are
pulling out their smartphones to conduct
a product search over breakfast, using
the store locator feature to swing by a
retail location after work or pulling up a
scannable rewards card at the register –
mobile moments enable brands to
provide their customers exactly what
they need in their immediate contexts.
Trends

24. Mobile Moment & Experience Optimization
Consumers interact with their smartphones for
countless mobile moments throughout the day. In
fact, 91% use their smartphones while completing another
task.
Trends
To keep up with the customers’ needs in their mobile
moments, retailers which are relying on responsive design to
deliver their mobile experiences will need to solve for
the limitations of responsive – for example by applying mobile
experience optimization (MEO) on top of their responsive
sites.

25. Loyalty will eclipse convenience in driving mobile payments
• A far more significant shift for mobile payments in retail in
2016 is being driven by retailers themselves: mobile
payments via retailers’ apps.
• Starbucks already drives 16% of its total transactions from
payments via its mobile app.
• Walmart also recently launched its own payment system,
Walmart Pay. Target, according to Reuters, is also
planning to develop its own mobile wallet as well.
• The success of retailers’ mobile payments, and where they
can succeed where mobile wallets have struggled, will lie in
the connection with their customers via loyalty rewards tied
into their payment apps.
Trends

26. IoT still chasing full potential, but wearables are poised for
growth
• The Internet of Things (IoT) offers companies the
opportunity to increase revenue, lower operating costs
and provide more relevant customer experiences.
• In 2016, 6.4 billion “things” are expected to be connected
to the Internet - a 30% increase from 2015.
• The IDC forecasts worldwide spending on the IoT will
reach $1.32 trillion by 2019.
• While it will take some years before the IoT reaches its full
potential, one much-talked about IoT trend in 2016 will be
wearables.
• eMarketer forecasts a 61% growth in wearables
ownership in 2016, with 63.7 million wearable users in the
U.S.
Trends
A few opportunities include:
✓ Coupons and rewards
✓ Flash Sales
✓ Mobile payments today, hands-free tomorrow
✓ One-finger shopping

27. The growth of mobile will force brands to optimize mobile checkouts
• Retailers are losing $18 billion annually due to shopping cart
abandonment.
• Over two out of three users who add items to their online
shopping cart leave without making a purchase.
• The numbers are even worse on mobile where conversion
rates are 70 % lower than desktop.
• In fact, smartphones generated over 57% of traffic and nearly
30% of revenue over the holidays
• With mobile commerce expected to grow at a rate 300% faster
than traditional eCommerce, more brands will focus on
implementing a seamless checkout experience in the coming
year.
Trends
Cyber Week
Year-Over-Year Mobile Growth
2015 Mobile Holiday Shopping Report

28. Predictions and Opportunities
• Expected growth in mCommerce is 40%
• mCommerce transactions are expected to top $115 billion in 2015 and climb to $142 billion in 2016
• In 2015 60% shopped on their smartphones, up from 52% in 2014, while 71% of tablet owners are now
shopping on their device, up from 47%.
• Mobile phones will generate 15% of ecommerce sales by 2020 and tablets 33%
• Smartphones generated over 57% of traffic and nearly 30% of revenue over the holidays.
• Beacons are expected to have a direct influence on over $44 billion in US retail sales in 2016. 85 of the
top 100 retailers are planning to adopt beacon technology by the end of 2016.
• Over 85% of mobile time is spent in apps. Web drives 2x the site traffic of apps
• Nearly one-third of retailers’ Web traffic are coming from phones, but only 11% of sales.
• The success of retailers’ mobile applications will lie in the connection with their customers via loyalty
rewards tied into their payment apps.

29. mCommerce Still Face Challenges
Security and safety concerns: consequences for mCommerce
The primary issue with mCommerce is security. Users fear that their devices will be attacked by viruses, resulting in the
theft of personal data.
People interested in mCommerce see,to be most comfortable doing so at
home, giving them more familiarity. Users of mobile media have not yet given
the thumbs up to the security featured in mobile devices.
Smartphone users have a tendency to feel exposed in public, concerned
about someone peeking over their shoulder as information is keyed. People
feel more secure buying from sites where their buying data is already stored.

30. The limits of small screen sizes
The primary complaint regarding the screen size is centered around the
inability to get a good look and feel of the product. Unless a buyer is familiar
with a product or the product’s appearance doesn’t matter, users are hesitant
to buy an item on a smartphone.
mCommerce Still Face Challenges
Screen sizes and the behavior of smartphone users are not
taken into account enough in general, whether it concerns
mCommerce, mobile websites or mobile email.
Obviously, as devices and operating systems evolve and as
retailers and other firms look at mCommerce, there are endless
possibilities to make it easy, convenient and user friendly beyond
the screen size limits.
And then there is the tablet, which again offers a totally
different shopping experience (and shows alternate behavior).

31. The concern of the speed
Users also voice concern over slow or unstable connections, fearing they would be cut off in the middle of
a transaction. This is another reason why buyers prefer buying from home.
mCommerce still face challenges
These are matters that remain a challenge to
businesses that want to sell products to buyers on
mobile devices.
The small screen size on smartphones will probably
not be solved tomorrow but, as pointed out before,
tablets become increasingly important and
smartphones and apps/website possibilities change.
The speed issue is also one that gets solved as we
move to faster networks.

32. Key Takeaways
• Purchasing behavior has changed
with mobile shopping, creating an
environment of convenience where
the user can simply buy from
anywhere using their smartphones.
• mCommerce collects the information
about the customers and stores it..
• The merchants can send targeted
offers to the smartphones,
influencing the customer’s buying
pattern.
• Physical and online worlds will
continue to converge
• Social commerce will remain hot but
will buy buttons deliver?
• Mobile responsive emails have
become very common, facilitating
the product promotion.
• The mobile web will continue to
outpace apps
• Consumer expectations will drive
retailers to focus on mobile moments
• Loyalty will eclipse convenience in
driving mobile payments
• IoT still chasing full potential but
wearables poised for growth
• The growth of mobile will force
brands to optimize mobile checkouts
• Customer information available in
real-time utilizes the customer
loyalty.

33. Thank You!