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This article is part of: Executive Briefing Service, Consumer
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Many companies are struggling to build a mobile commerce business case that generates significant incremental revenues in the next five years. But some will ultimately use digital wallets to create a valuable platform that bolsters customer loyalty and produces substantial revenues from location-based marketing, advertising and the management of personal data. What are the barriers, how can they be overcome, and what are the key actions for telcos, major internet players, banks and payment networks?
Introduction
STL defines Digital Commerce 2.0 as the use of new digital and mobile technologies to bring buyers and sellers together more efficiently and effectively. Fast growing adoption of mobile, social and local services is opening up opportunities to provide consumers with highly-relevant advertising and marketing services, underpinned by secure and easy-to-use payment services. By giving people easy access to information, vouchers, loyalty points and electronic payment services, smartphones can be used to make shopping in bricks and mortar stores as interactive as shopping through web sites and mobile apps.
To read the note in full, including the following sections detailing additional analysis…
- Executive Summary
- Overcoming the Barriers
- 1. Understand the marketplace you are operating in
- 2. Develop compelling service offerings
- 3. The value network
- 4. Technology
- 5. Finance – the high-level business model
- Conclusions and next steps
- About STL Partners
…and the following figures…
- Figure 1 – The Cycle and Functions of Digital Commerce
- Figure 2 – Mobile wallets will take time to gain traction
- Figure 3 – The mobile commerce flywheel
- Figure 4 – The STL Partners Business Model Framework
- Figure 5 – For banked consumers, digital wallets mainly offer convenience
- Figure 6 – For the unbanked, digital wallets offer convenience and some savings
- Figure 7 – For merchants, digital wallets help build deeper customer relationships
- Figure 8 – Telcos’ potential revenue streams from a digital commerce service
- Figure 9 – Telcos’ potential major costs in launching a digital commerce service
- Figure 10 – Telcos’ mobile commerce revenues are likely to be modest
- Figure 11 – Telcos have regular customer contact and real-time data
- Figure 12 – Potential strategic actions for telcos
- Figure 13 – Leading Internet companies have global reach and scale
- Figure 14 – Potential strategic actions for Internet players
- Figure 15 – Banks have local knowledge, payment networks trusted brands
- Figure 16 – Potential strategic actions for banks and payment networks