PHOTO - (from left) Elias Ghanem, managing director, PayPal Southeast Asia and India; and Rahul Shinghal, director, PayPal Mobile Asia Pacific scanning a QR code with their tablet and mobile phone to make a purchase.
Online payments provider PayPal has announced a mobile checkout feature for all merchants signing on in Malaysia. This move is to help local businesses win a slice of the rapidly-expanding mobile commerce wave, which saw a six-fold increase in transaction value in 2011.
According to a 'PayPal Online and Mobile Shopping Insights 2011' study, 'mobile commerce in Malaysia was driven by a rise in the number of mobile shoppers and a substantial increase in spend per head,' said PayPal Southeast Asia and India managing director Elias Ghanem.
"The mobile commerce market in Malaysia saw phenomenal growth from RM101 million [US$ 32.94 million] in 2010 to RM467 million [US$152.31 million] in 2011, representing more than a 370 percent jump in just one year," said Ghanem. "The mobile commerce market is also forecasted to grow more than seven times to reach RM3.43 billion [US$ 1.088 billion] in 2015, which translates to 60 percent of the online shopping market."
He said this showed that mobile commerce would play an increasingly significant role in the overall commerce market as Internet-enabled mobile devices become a key part of Malaysians' daily lives.
"The study revealed that Malaysians spent RM337 million [US$109.9 million] through their smartphones in 2011 - representing close to three quarters of the total mobile commerce market - compared to RM108 million [US$35.22 million] through tablets," said Ghanem. "The median spend per head on smartphones was RM494 [US$156.74], which is slightly higher than the median spend of RM464 [US$147.22] via tablets."
"The survey findings revealed a clear trend in couch commerce with almost 40 percent of purchases on both tablets and smartphones made at home," he said. "The office was the next common place to shop (20 percent of smartphone users and 16 percent of tablet users). Besides home and office, other common places to shop using mobile devices were restaurants and while in-transit."
Commissioned by PayPal, The Nielsen Company conducted the online study 'PayPal Online and Mobile Shopping Insights 2011,' and surveyed a representative sample of 1020 Malaysian online shoppers aged 18 and above, of which mobile shoppers constituted 415 respondents.
Streamlining the mobile process
PayPal Mobile Asia Pacific director Rahul Shinghal said the company has announced the 'PayPal Mobile Payments Standard' solution, which automatically provided all merchants that accept PayPal on their website with a mobile checkout experience optimised for mobile devices.
"Mobile commerce has taken off in a big way globally and here in Malaysia," said Shinghal. "PayPal is aggressively driving this change by streamlining the mobile payment process in as little as two clicks on web-enabled mobile devices for millions of consumers and businesses across the world. The consumer demand is here, and the time is right for Malaysia's retail industry to integrate mobile into their business strategies and offer faster and more secure mobile optimised checkout."
He said that PayPal's mobile-optimised checkout solutions allowed consumers to pay faster in just two clicks on smartphones and tablets. "Mobile payments made via PayPal are more secure as no sensitive financial information is stored on the mobile device."
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