Company sets sights on mobile commerce in order to boost dwindling revenue
Vodacom, one of the largest mobile operators in South Africa, has announced plans to launch a mobile commerce initiative in the near future. The company has been seeing its revenues dissipate over the past several quarters despite the growing adoption of smartphones and tablets throughout the country. In an attempt to engage consumers more effectively, Vodacom has begun focusing more heavily on mobile commerce. This focus may help the company increase its revenue generation by providing consumers with access to new services that are in high demand.
South Africa is showing interest in mobile commerce and payments
According to Vodacom, mobile commerce has the potential to boost its revenue stream by double-digit percentages. The revenue boosting potential of new mobile initiative depends heavily on where these initiatives are launched. Consumers in South Africa have shown some interest in mobile payments, but Vodacom also does business in other African countries where smartphone penetration is still quite low. Consumers in these countries are unlikely to support mobile commerce because they do not have the devices needed to do so.
App aims to provide merchants with more exposure as consumers become more mobile
Vodacom’s first step into the mobile commerce space will be accomplished through its Vouchercloud application. This app is designed to use geo-location to provide consumers with special deals being offered by retailers in their areas. Vodacom believes that this application will provide merchants with powerful advertising opportunities, exposing them to consumers that are looking for special offers.
Vodacom may have to provide secure and convenient services if it wants to compete
Mobile commerce is a competitive field, especially in countries like South Africa where consumers are gaining more access to mobile technology. Large organizations like MasterCard and Google have been working to establish a strong presence in these countries in order to capitalize on mobile payments. Vodacom is likely to experience this competition as it continues to engage in the mobile commerce space. If the company can provide access to efficient and security services, it may be able to beat out the competition.