Mobile Commerce Set to Grow to $31 billion by 2016

Mobile commerce is expected to destabilize the traditional shopping and is set for steady growth over the next five years, according to a Forrester report. The report forecasts that shopping via smartphones will account for $6 billion (2% of the e-commerce) by the end of 2011 and will rise to $31 billion (7% of the internet sales) mark by the year 2016.

The report highlighted that still very little is known about the potential mobile technology to boost sales. Sucharita Mulpuru, the report’s author said:

Most companies view mobile as a channel that is primarily about completing sales through a mobile site. But the opportunity to arm store associates with instantaneous information and richer payment acceptance capabilities may be the most compelling reason for retailers to invest in mobile.

The trend of mobile commerce is gaining momentum and although a large proportion of mobile users don’t shop via their phones, they will eventually start doing so. With retail customers equipped with smartphones to access production info and price comparison the brick-and-motor stores are expected to face fierce competition against online retailers.

All the major carriers, phone makers and financial institutes are both cooperating and competing to develop efficient mobile payment systems. This in turn is rapidly building a future where mobile phones will play a major role in the actual transactions for online and well as physical stores purchases.