Page 279 - (DK) The Business Book

SUCCESSFUL SELLING 277

See also: Reinventing and adapting 52–57 ■ Understanding the market 234–41 ■ Lean production 290–93 ■
Applying and testing ideas 310–11 ■ The right technology 314–15

to show compound annual growth Given that the biggest increase
of 48 percent in the five years from in smartphone sales has been in
2012 to 2017, with the value of emerging markets such as China,
m-commerce over the same period India, and Africa, it is not surprising
increasing by 250 percent on that these regions are considered
Consumers no longer smartphones and more than growth hubs for m-commerce. In
go shopping, they always 425 percent on tablets. China, expanding ranks of middle-
are shopping. In the UK, which leads Europe class youths are fueling a rapid
Chuck Martin in the growth of m-commerce, expansion of mobile transactions,
US CEO of Mobile Future Institute Barclays PLC expects m-commerce while in Africa, e-commerce has
to grow by 55 percent over the been virtually bypassed in favor
same five-year period, while of m-commerce. In some African
traditional online sales will grow countries, in the absence of a
by only 8 percent and in-store conventional banking infrastructure,
sales by 1.6 percent. cell phones have created an
informal banking system.
The customer holds the device Emerging markets In 2007, the leading mobile
against a paypoint enabled with The sudden and explosive growth network provider in Kenya,
a technology called near field of m-commerce can be attributed Safaricom, set up a mobile banking
communication (NFC); this to several factors. Consumer service called M-Pesa. Money
establishes a radio connection adoption of smartphones and loaded onto the phone can be used
between the two devices to tablets is increasing; more and to make purchases or transfer
complete a transaction. more people access the Internet funds. Currently, M-Pesa operates
with mobile devices rather than in Kenya, Tanzania, Afghanistan,
Growth of m-commerce with desktop computers; and South Africa, and India, with plans
The value of online sales made on customers have become more used by Safaricom stakeholder Vodafone
mobile devices is predicted to grow to shopping on the move, enjoying to roll out the service internationally.
exponentially. North American the convenience and immediacy As this example indicates, the long-
research specialist Forrester it provides. People are also placing term implication of m-commerce
forecasts US m-commerce sales more trust in the service. could be a global cashless society. ■

Mobile banking banking with retail suppliers
and provide a personalized
The banking sector has helped service for consumers).
to power m-commerce from the La Caixa bank in Spain has
start, when Merita Bank of introduced contactless ATMs,
Finland launched the first allowing customers to withdraw
cell-phone-based banking cash with a tap of their cell
service using SMS in 1997. phone. They can also buy tickets
Since then, the key challenges to events, select seats, and show
for developers have been a QR code to access venues. In
security (providing a safe Australia, Commonwealth Bank
environment for transactions); customers can make tap-and-go
technology (developing cross- payments at retailers. Mobile
platform banking apps that will banking is evolving so users can Using M-Pesa, the cell-phone
work on any cell phone); and make payments irrespective of money-transfer service, is common in
innovation (finding new and which bank they use or which Kenya. Funds are transferred by SMS
improved ways to link digital retailers they go to. into an electronic wallet on the phone to
be used at stores and agents nationwide.