Mobile payments may be stuck in a stone age

Stone age mobile payments

Mobile commerce is struggling with an inefficient monetization process

Mobile commerce is not as successful as it could be and that is because of an inefficient monetization process, according to mobile payments firm Klarna’s Sebastian Siemiatkowski. The firm suggests that digital commerce is in  type of “Middle Ages,” while mobile commerce is in a “Stone Age.” While e-commerce has managed to flourish over the past several years, mobile commerce has struggled to find a foothold throughout the world. While the mobile space has seen a significant degree of success, it has a long way to go before it can be considered on par with other forms of new commerce.

Relatively few people actually finalize a mobile purchase

Siemiatkowski suggests that if physical payments were as complicated as mobile payments, few people would be inclined to shop in general. In order to participate in the mobile commerce field, consumers must go through several steps before they can actually purchase a product. Semiatowski also suggests that for every 100 people shopping online from a mobile device, only 16 people actually finalize a purchase, with the rest abandoning their online purchases because the process is simply too inconvenient.

Mobile commerce pay not actually be as convenient as it seems

Stone age mobile paymentsConvenience is one of the major draws of mobile commerce, but many retailers are unable to deliver on their promise of a convenient shopping experience when it comes to engaging  mobile consumers. Many mobile shopping platforms are not actually optimized for mobile devices, creating a degree of frustration for consumers that actually want to shop online.

Security could be driving people away from mobile shopping

Ironically, the problem may actually have to do with the security measures that are being set up in the mobile commerce space. Some security solutions designed to protect mobile payments require consumers to go through various authentication steps before finalizing a purchase. Security is one of the major concerns that consumers have when it comes to mobile commerce, but some security solutions are making mobile payments unnecessarily complex and slowing the evolution of mobile commerce in general.

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