PCM Vol. 2 - Issue 11

Thought Leaders Corner
by Markus Rinderer
Payment integration and enablement is the
cornerstone of a successful mobile strategy
In the majority of developed markets,
store-based retail sales are shrinking
while eCommerce and mCommerce
grow at 10- 20% annually. It is no
surprise then that merchants are more
focused on digital commerce growth
opportunities more than ever before.
There are a number of different paths
that a merchant can pursue to harness
this digital commerce opportunity. From
optimizing a domestic business, to going
cross-border or enabling omni-channel;
each growth path presents unique
challenges from a payments perspective.
While the specific challenges differ
depending on the growth strategy, in
all cases payments play a pivotal role
in turning shoppers in buyers, and are
integral to merchants’ bottom lines.
Of all the ways that merchants can
expand and grow their business, mobile
is currently the priority for many, which
is unsurprising given that nothing
else today is driving more commerce
growth. Although principles gleaned
from traditional eCommerce extend
to mobile commerce, merchants must
adapt the customer experience and
operating model in order to thrive. And
that includes adapting their approach to
payments.
Consequently, merchants are
demanding that their payment providers
equip them with the integration tools,
payment methods, and technical
documentation needed to serve the
mobile channel.
The mobile opportunity for
merchants
There are now 8.6 billion mobile devices
worldwide, which is 1.2 devices per
person. And they are increasingly
powerful devices: 2016’s iPhone is
more powerful than 2006’s iMac, has
similar screen resolution, and a much
faster internet connection. Nearly 80%
of mobile users in developed markets
use a smartphone and analysts expect
70% of the world’s population to have a
smartphone by 2020.
Consequently, mobile commerce is
outgrowing traditional eCommerce,
and has really exploded over the past
five years. Notching only a single digit
mCommerce as % of total e/mCommerce
in key markets
Source: Local e-Commerce Associations, eCommerce Europe,
Internet Retailer, Mobile Marketer, First Annapolis market
observations and estimates.
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