The world is ready for m-commerce

Mobile commerce, or the ability to pay for goods and services by using a mobile phone, will be easily accepted by mobile telephony consumers, according to a new study released by Nokia.

Mass market ready and waiting for mobile commerce, according to new consumer study for Nokia.

Mobile commerce, or m-commerce, the ability to pay for goods and services by using a mobile phone, will be easily accepted by mobile telephony consumers, according to a new study announced today by Nokia.

The study shows that many more people will be willing to use their mobile phones for m-commerce than presently use eCommerce to make purchases over the Internet. The study confirms that mobile operators can expect future revenue growth from m-commerce.

The study conducted by MORI, Britain's largest independent market research agency, found that roughly eight-times as many people would use m-commerce as compared to the number of people actually using eCommerce today.

The study also showed that nearly 90% of people interested in using m-commerce services will also be willing to pay extra for the convenience of making purchases with m-commerce.

MORI interviewed over 11,000 people in six markets from October 2000 to January. The range of markets studied was global -- Great Britain, South Korea, Italy, USA, Brazil and Finland.

Nokia undertook the study to provide an end user perspective on m-commerce, which will likely be rolled out to some markets in the near future. In particular, Nokia aimed to gain insights into people's attitudes towards potential m-commerce services and applications, as well as insights into people's fears and obstacles preventing m-commerce usage.

The study revealed that mobile-phone users view m-commerce as complementary to alternative remote-commerce channels such as the Internet. They tend to favor "local" transactions, where m-commerce provides a unique application for electronic transactions.

Their choice of payment method depends on the size of the transaction and billing arrangements, but most are willing to pay extra for m-commerce services. This suggests that consumers see real value and benefit in using their mobile phones as tools for shopping.

Earlier this month, Nokia launched the The Nokia Payment Solution, a new solution for mobile e-commerce, which aims to enable payment service providers to mediate payments between financial institutions, merchants and consumers. The study demonstrated that convenience and control will play a pivot role in acceptance of m-commerce. Study participants saw m-commerce as a way of avoiding carrying cash or waiting in queues, as well as a way to grain greater control over expenditures and enjoy unlimited purchasing possibilities.

Future m-commerce users are unlikely to view specific goods and services as exclusively "m-commerce products". They will think in terms of situations, such as being lost or having a car breakdown, where they are willing to pay more for services available via m-commerce.

"It is clear from this study that the market sees m-commerce as a natural extension of eCommerce," said Reza Chady, Global Head of Market Research, Nokia Networks.

"While it is a new concept to many people, they are already expecting to use this method of payment in the future, which makes us feel confident that the potential mass market for m-commerce is huge."

Specifically, the study found that initial adoption of m-commerce is likely to be on a similar scale as today's usage of eCommerce, which is already somewhat mature. Also, 24% to 54% of respondents across the markets stated they would be willing to carry out a transaction of more than USD$25 using a mobile device.

Nokia Network's market research is created by the WCDMA (Wideband Code Division Multiple Access) 3G Research Centre. The Research Centre provides professional global market research and market analysis.

The projects undertaken by the Research Centre include extensive analysis of usage and behaviour for 3G topics such as Mobile Internet, m-commerce, entertainment, mMarketing, tariffing, and enterprise / corporate services and applications.