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Digital wallets are coming to the fore

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All reports seem to show that mobile is on the rise and, while this growth continues unabated, it has helped disrupt many traditional industries, including transportation, accommodations, services and retail.
As a result, revenue for mobile commerce is gaining ground and was expected to notch up global revenues of $204 billion by the end of last year, with many market sectors having to increasingly think of ways to engage with mobile transactions.

This is according to Nicholas Groove, business development manager of web-based solutions company, ImproWeb, sister company of Esquire Technologies, one the leading distributors in southern Africa of IT, mobility, digital and consumer lifestyle products.

As consumers move to mobile platforms, they’re demanding simple and straightforward buying experiences like those of Airbnb, Trunk Club, Uber and YPlan.

The simpler mobile buying becomes, the more mobile commerce will grow.

But Groove pointed out that there is still a big gap between browsing and the actual buying on mobile.
This is arguably because too many obstacles still stand between consumers and merchants trying to connect via mobile devices.

Interestingly, while mobile is definitely growing, it still only accounts for around one percent of all commerce transactions. So the room for growth is massive.

Groove believes that over the next five years the marketplace will witness the growth in digital wallets – apps and hardware that will let us buy things directly, without the need to grasp for our credit cards. Indeed, digital wallets will ultimately replace traditional “paper” wallets as the chosen way to shop – and pay for items.

It is expected that this shift will really pick up speed in 2015, although it will take “some time” for people to forsake the traditional wallet in favour of the digital one.

“It must be noted that people carry their smartphones with them wherever they go. They are being used as a primarily means of communication and USA smartphone owners spend around three hours on their phones each day. This will eventually result in more people actually using their smartphones to purchase goods and services. Its growth will be unstoppable.”