Photo - Chan Kok Long, Executive Director, iPay88
Mobile commerce (mCommerce) is expected to grow 300 percent faster than eCommerce this year, according to Malaysian payment gateway provider iPay88's latest outlook.
Commenting on the latest findings taken from the company's mobile traffic data, iPay88's executive director Chan Kok Long said Malaysia was now in the top three fastest growing emerging markets for mobile shopping in this region.
Chan said the company's mobile traffic data with its total online payment transactions represented almost 70 per cent of the Malaysia online ecommerce market. "In year 2015, iPay88 recorded that 3.7 million online shoppers who made purchases through its systems used mobile devices. Compare this to Year 2014, where it was just 2.0 million."
"Meanwhile, as at first quarter of 2016, 1.6 million online shoppers of iPay88 have purchased using mobile devices," he said. "Many of our merchants are also actively promoting mobile purchases in 2016 following the mCommerce boom."
More data to show the explosion of mCommerce was provided by the percentage of traffic from mobile channels recorded in iPay88's system: Year 2014 - 27.0 percent of eCommerce transactions, Year 2015 - 38.4 percent and by Q1 of Year 2016 - 48.6 percent.
As the number of mobile device users in the country increases, so will shirt to mCommerce, said Chan, adding that mobile penetration in Malaysia reached 136 per cent in Year 2015, with 47 per cent of Malaysians using their smartphones to shop online.
From a global perspective, he said that Denmark, Norway, and Sweden were leading the mCommerce evolution with the fastest mobile growth. "Emerging markets in India, Taiwan, and Malaysia are also leading the way for shopping growth on mobile device."
"No doubt that the availability of cheap smart phones and laptops have made the Internet accessible to a whole new demographic. The advent of tablets and smart watches has also broadened the spectrum of Internet usage," said Chan.
He cited a Statista report that noted the value of retail goods purchased via mobile device globally was projected to exceed US$$1 billion in 2018. Meanwhile according to PayPal, 28 per cent of the 4.9 billion payments it processed were from mobile devices in year 2015. PayPal has also projected that mobile commerce's compound annual growth rate (CAGR) at 42%, while e-commerce CAGR is expected grow at 13 percent.
A survey on Mobile Shopping conducted in Year 2015 reported that Malaysia ranked third in the rate of growth of mobile shopping in Asia at more than 20 per cent. The survey reported 25.4 per cent in 2012, to 45.6 per cent in 2014, said Chan.
He said that international online stores such as Amazon, Apple, Walmart, and Google Play were recording more consumers who are purchasing from their mobile device. "In Malaysia, the top mobile commerce purchases via smartphones are ticketing 35 percent and marketplace/group buying 29 percent; while airline tickets are the most popular items Malaysians purchase on tablets."
"Besides the high proliferation of smartphones, new Internet business models such as Uber and GrabCar that leverage on mobile booking and transactions via mobile phones, and remote control features internet of Things (IoT) connectivity are also expected to drive mCommerce market volumes," said Chan, adding that iPay88 expected to continue its year-on-year growth rate of more than 100 per cent.
"We believe that the e-space is no longer dominated by SMEs and SOHOs but large corporations and conglomerates," he said. "These are the companies that will invest heavily to gain market shares and will be competing with the international players in their own market and industry."
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