Mobile Transactions Forecast To Reach $730bn By 2017
Not that long ago, TV was the major source of domestic entertainment and the centre of the universe for couch potatoes. Nowadays, computers and mobile devices have greatly reduced the importance of the telly as a news and entertainment source but the couch has lost none of its clout.
We now have a trend dubbed “couch commerce” and it will play a major role in the growth of mobile transactions. According to Juniper Research, consumers will be spending $730 billion a year by 2017 to buy digital and physical goods via mobile devices.
In a report titled “Mobile Payments for Digital & Physical Goods: Opportunity Analysis 2012-2017”, Juniper says that one reason for the impressive growth will be the increasing scale of non-digital, or real-world, purchases from leading brands and retailers. The research firm used as examples UK general merchandise retailer Argos and US pizza chain Domino’s, which already generate 6% or 7% of their sales through mobile.
Now back to “couch commerce” since you are probably wondering what that might be. Simply put, it is a newly coined term referring to online sales conducted via a tablet computer or a smartphone. The couch connection has to do with the fact that there is a growing tendency among consumers to use their mobile gadgets and buy stuff online, while watching TV. According to Juniper, these devices will be responsible for 30% of online purchases within five years. However, transactions of that type will still account for a small portion of global retail sales, of which the current value is estimated at more than $1 trillion.