More than two billion users of mobile phones or tablets will make some kind of mobile commerce transaction before the end of 2017, according to a new report by Juniper Research. That is up from 1.6 billion users this year.
Released on Friday, the report, Mobile Commerce Markets: Key Sector Strategies, Opportunities & Forecasts 2014-2019, found that in a number of developed markets, mobile devices will account for over half of online transactions within five years.
The highest penetration of mCommerce currently exists in North America (56 percent) although the report predicts that as tablet adoption grows in Western Europe, the region will overhaul North America by 2018.
Apple Pay is expected to provide contactless payments with momentum outside of the South Korean and Japanese markets, where NFC already has strong traction, according to Juniper Research.
Social networks could also help accelerate mobile commerce adoption, according to the report.
“Brands and retailers should certainly seek to integrate their offerings with players such as Facebook and FourSquare. Integration offers reach, allied to the potential to target specific user demographic,” report author Dr. Windsor Holden said in a statement.
Mobile commerce adoption is being held back by consumer concerns around transaction security. At the end of October, Apple Pay competitor and mobile digital payment processor CurrentC was hacked, exposing user email addresses.