The mobile web key to m-commerce, says PayPal
MALAYSIAN enterprises with online web presence are not
prepared to take advantage of the burgeoning mobile commerce (m-commerce)
transactions in Malaysia, and will have to re-think their long term
strategy or risk losing out in business opportunities, according to PayPal.
Yesterday, the online payment provider released a report which stated that m-commerce spending in Malaysia has quadrupled from RM101 million (US$31.7mil) in 2010 to RM467 million (US$146.6mil) in 2011. Comparatively, regular [non-mobile] electronic commerce only grew 9%, from 1.8 billion in 2010 to 1.97 billion in 2011. PayPal also forecasted that this trend will be set to continue reaching RM3.43 billion (US$1.08 bil) by 2015.
Rahul Shinghal, director of PayPal Mobile Asia Pacific, noted that there are three main drivers for this phenomenal growth in Malaysia.
Yesterday, the online payment provider released a report which stated that m-commerce spending in Malaysia has quadrupled from RM101 million (US$31.7mil) in 2010 to RM467 million (US$146.6mil) in 2011. Comparatively, regular [non-mobile] electronic commerce only grew 9%, from 1.8 billion in 2010 to 1.97 billion in 2011. PayPal also forecasted that this trend will be set to continue reaching RM3.43 billion (US$1.08 bil) by 2015.
Rahul Shinghal, director of PayPal Mobile Asia Pacific, noted that there are three main drivers for this phenomenal growth in Malaysia.
The first, he said, was because Malaysia has one of the
highest smartphone penetration in the world. Citing a recent study by market
analyst GfK -- which noted that Malaysia has sold over 4.4 million smartphones
in 2011 -- Shinghal said this is one of the main reasons for the increase in
m-commerce transaction in Malaysia.
The second reason has to do with a change in behavior of those owning smartphones, many of whom are between the ages of 18 and 24. Many in this demographic have abandoned the use of fixed lines, and to a lesser extent, the fixed [desktop-bound] Internet to access the Net, Shinghal noted.
"Thirdly, there is a convergence between offline and online activity," Shinghal told the media yesterday (June 14). "In the past, people interested in buying say an electrical appliance would do their research and reviews on the fixed Internet before going off to the physical store and buying the item.
"Today, people walk into stores and while browsing there, they are checking out reviews and making the decisions to buy items, there and then, with their smartphones.
"This whole convergence between an offline and online world, where the phone becomes a companion for them while they are shopping -- not just for searching but for price comparison and for removing price arbitrage -- and buying on the spot, is another key trend driving m-commerce."
The second reason has to do with a change in behavior of those owning smartphones, many of whom are between the ages of 18 and 24. Many in this demographic have abandoned the use of fixed lines, and to a lesser extent, the fixed [desktop-bound] Internet to access the Net, Shinghal noted.
"Thirdly, there is a convergence between offline and online activity," Shinghal told the media yesterday (June 14). "In the past, people interested in buying say an electrical appliance would do their research and reviews on the fixed Internet before going off to the physical store and buying the item.
"Today, people walk into stores and while browsing there, they are checking out reviews and making the decisions to buy items, there and then, with their smartphones.
"This whole convergence between an offline and online world, where the phone becomes a companion for them while they are shopping -- not just for searching but for price comparison and for removing price arbitrage -- and buying on the spot, is another key trend driving m-commerce."
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