A recent study by Javelin Strategy & Research revealed that consumers spent $20.7 billion shopping on mobile devices within the last year, though only $417 million of those profits have come from point-of-sale transactions.
Mobile payments have revolutionized retail purchasing, though a lack of cooperation between banks, merchants and vendors could result in the industry’s long-term underperformance, American Banker reports.
The Javelin study revealed that, in the five years since Apple released the first iPhone, mobile purchasing has come to be used by more than 25 percent of mobile phone users. Tablets have also been crucial in the move towards online retail as larger displays have allowed the tablet to tap a substantial segment of the online mobile retail market.
Research from IDC Financial Insights also revealed that worldwide payments over mobile devices will increase to $1 trillion by 2017, most of which will be derived from mobile commerce. While that number sounds substantial, IDC said that it is only approximately 2.5 percent of the total amount of commerce addressable by mobile devices, according to American Banker.
IDC said that if shareholders in the mobile payments market cooperated better, it would cause an uptick in mobile payments. Aaron McPherson, a practice director at IDC, said that cooperative efforts will be difficult, as companies attempt to deal with competitive tendencies.
“Big companies have to lay aside their proprietary interest,” McPherson said, American Banker reports. “But how many merchants will want to get into bed with Wal-Mart?”