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WirelessDevNet.com Press Release
BRICKS AND MORTAR RETAILERS CAUTIOUS ABOUT THE POTENTIAL OF MOBILE COMMERCE
Bern - Sicap, the provider of mobile applications and network products for GSM operators, today unveiled findings from the world's first significant survey into the attitude of retailers towards mobile commerce. The survey of 514 retail professionals identified security, consumer trust, convenience and usability as the main issues that would determine their decision to adopt the technology.
52 percent of those interviewed were positive about the prospects for mobile commerce with 50 percent attracted to its revenue generating potential. Window-shopping was identified as the "killer" application that would drive mobile commerce growth. By enabling consumers to purchase store items displayed in shop windows consumers would be able to make purchases outside store opening hours as well as avoid queuing at checkouts. In contrast, retailers questioned the added value to consumers of other often quoted mobile commerce scenarios like paying at the point of sale (POS) in a store and toping-up prepaid accounts.
Three factors were identified by retailers as pre-requisites for mobile commerce to be part of their business strategy. First, retailers need to fully trust the entire process of mobile payments from the technology used through to the fulfillment and billing processes. Second, added convenience to the customer is considered imperative. Simply replacing proven electronic debit and credit card transactions for mobile payments does not add to consumers shopping experience. Third, services must have faultless usability for consumers to adopt them.
USSD, an alternative transport protocol present on most GSM networks, was seen as an attractive platform on which to base services because it is fast and uses interoperable technology that would enable subscribers from different networks to access the same services. Retailers suggested that a common USSD menu for mobile commerce services be agreed between retailers and mobile operators to improve usability and speed up adoption.
"The survey reveals that retailers are generally positive about mobile commerce but it identifies a number of issues that need ironing out," said Per-Johan Lundin, head of marketing for Sicap. "By far the most important of these is trust. The survey indicates a real concern amongst retailers that getting people to use their phone for financial transactions requires a significant leap of faith in technology."
"One suggestion would be to implement a hybrid approach to mobile commerce that combines new world and old world scenarios. For example, people like a paper record of transactions, so one solution might be to enable people to pay over the air using their mobile phone but then allow them to pick-up a paper ticket."
"Retailers also feel very strongly about payments being the domain of established financial brands like Visa, Mastercard and American Express because these are trusted by consumers. This is an issue of trust not technology per se, so the solution here is to make sure these major financial brands are seen as the face of the process."
The research was conducted by Indro Celia, professor of e-business, at the University of Applied Sciences of Central Switzerland, in conjunction with technology partner Sicap, and mobile operators, Swisscom and Sunrise. It is the result of interviews with 514 retail professionals including 30 board level executives, 215 senior managers, 137 middle managers and 110 shop floor employees.
About Sicap
Sicap is a software company based in Bern, Switzerland that develops and provides mobile applications and network products for GSM operators. Sicap's goal is to continuously improve and innovate by adding value through ingenuity. Since 1995 Sicap have focused on cost-effective solutions that minimize infrastructure upgrades, thereby ensuring a quick return on investment for our customers. We provide solutions in the areas of Charging, Messaging and Over-The-Air. For further information on Sicap please visit www.sicap.com.
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