While close to 40% of the U.S. population is expected to subscribe to a wireless Web service in 2006, mobile transactions will not be quick to catch on.
Less than $4 billion in shopping and travel will be transacted on Internet-capable mobile phones representing less than 2% of all online shopping, according to a report by Jupiter Media Metrix.
One of the reasons for the slow start is that, for consumers, using a wireless device is not a priority (only 7% of consumers expressed interest in transacting with a mobile phone). Jupiter analysts predicted, however, that shopping-related content on mobile devices will influence transactions online via personal computers and offline in brick and mortar stores – sales that will be valued at $39 billion in 2006.
Other findings in the study include:
* Mobile commerce will be driven by a desire for instant gratification, not extensive research, which fueled the early adoption of online commerce. Therefore, mobile commerce revenue will be characterized by time critical purchasing.
*Top wireless commerce categories will be those that benefit from personalization, time and location sensitivity.
* U.S. mobile merchant revenue will total only $22 million in 2001 and will be driven largely by occasional sales of entertainment and airline tickets, flowers and other timely gift items.
* 1.4% of consumers who own Internet-ready wireless devices made a purchase using the data capabilities of their handset or PDA in 2000.
* Consumers that already buy goods and services online avoid shopping via wireless devices chiefly because of concerns over the cost of access, with 36% reporting that it discourages them from shopping wirelessly.
* Wireless carriers must create free, dedicated shopping channels on their wireless Web portals and merchants must offer discounts or promotions to consumers making their first purchases over the wireless Web.
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