The day e- and m-commerce became one

Want to see into the future? Well look no further than Amazon. Or rather, it’s billing service. Amazon’s one click payment service – which users register to use online but can then use on the mobile – is starting to gain traction outside of Amazon, with games and apps store Handmark in the US integrating the offering into its services.

It is admittedly a small step for the multi-billion dollar billing industry and I doubt many telemedia executive will be losing sleep over it just yet, but it is significant for a number of reasons.

First up it marks a convergence of m- and e-commerce – something that has been coming since the iPhone launched – and looks significantly like m-commerce is merely an extension of m-commerce: different device, but the same basic site and purchasing tool.

Secondly, the move is a possible indicator as to where the mobile billing space is heading: away from network operators and towards merchants. This would be warmly welcomed by many in the industry as it increases the erosion of the stranglehold network operators have tried to exert over m-commerce since its inception. There are of course issues with PCI DSS compliance and the EU Payment Directive looming (see Telemedia360 September 2009), but a move away from MNO billing would certainly open up more varied price points, better payouts and encourage more merchants to start offering mobile commerce.

Thirdly, the move by Amazon comes at a time when the consumer is crying out for mobile commerce to take off. A study by ATG (Art Technology Group), a provider of e-commerce solutions out this week, finds that as many as 38% of UK consumers have tried to shop online from their mobiles, but 28% of those who have tried it find it a difficult, being especially concerned as to how secure the billing side of things is.

According to the study, more than one in three UK respondents (39%) say they would be more likely to shop using their mobiles if retailers provided secure and easy payment services. Twenty-four per cent think offering mobile-only offers and incentives will encourage adoption. Twenty-two per cent believe retailers should design websites optimised for smaller screens to encourage use.

The move to broaden Amazon’s billing reach can only help with this. It will also more than likely drive other online merchant billing stalwarts like PayPal to really go for it on mobile. It may even see others enter the market. It certainly offers a startling opportunity for some of the telemedia industry’s finest to look at how to make their billing tools much more mainstream and really reap the rewards.

Of course there are still many rivers to cross before the general public embraces m-commerce fully, and these must be addressed alongside the billing.

The ATG study found that, despite the growing popularity of mobile applications, just 15% of UK consumers feel developing specific commerce-related applications would entice them to shop using their mobile. The survey shows use of m-commerce would increase if retailers offered customers more personal optimised experiences to suit changing lifestyles and tastes.

This is something that the whole mobile commerce industry has to address: the whole m-commerce experience needs to change. The billing is a part of that – a significant one, from a security point of view – but just a part nonetheless. How the industry now combines personalization, social networking, status-based contacts books, apps stores and billing with m-commerce will be the next great leap forward for mobile and for telemedia. And something that will be debated at TELEMDIA360 in Liverpool on 21 October. Click here for details.