The mobile phone is evolving into a power commerce tool, enabling consumers to review products, run price comparisons, access inventory levels and make transactions both over the mobile network and the retail point of sale. However, while industry commentators have hailed the virtues of mobile commerce for some time consumers have not responded positively- beyond buying ringtones and wallpapers. So why will m-commerce blossom in 2012?

First, some large web retailers indicate that mobile is becoming a significant sales channel. In July 2010, Amazon announced that mobile devices generated US $1 billion in sales, 3.5% of its net sales during the 12 month period. Last month Ebay stated it expects to process $3 billion in payments (via PayPal) in 2011. To dispel the view that big ticket items aren’t ripe for mobile commerce, Ebay indicated 3-4 Ferraris are sold via its mobile application each month!

Second, we expect more retailers to create mobile sites enabled for mobile commerce. For a long time, web traffic from mobile devices has been negligible. Once it accounts for over 10% of traffic, as it does for some retailers, merchants start to view it as a missed sales opportunity.

Third, a slew of services will be launched in 2012 enabling consumers to make small value payments by tapping their NFC (Near Field Communication) enabled mobile phone against an NFC retail point of sale. 2012 will be a critical year for driving NFC handset sales and encouraging retailers to adopt the technology, although we expect end-user adoption to lag due to inertia.

Finally, consumers increasingly recognize that product reviews and price comparisons conducted on mobile devices enable better purchasing decisions both in and outside the store. Importantly, mobile payment is convenient and enables consumers to buy products when and wherever they want.

2012 Mobile Trends: Commerce, product ecosystems, location integration