Mobile Commerce Market for New Zealand is poised to grow at a CAGR of 20% for the next 5 years, from USD3.9 billion in 2014 to USD9.6 billion in 2019, says Frost & Sullivan, a leading research and advisory company. Mobile Commerce which encompases purchase and payments made via mobile devices and encompases segments such as mobile gaming, mobile advertisement, mobile purchases, mobile banking, mobile payments and mobile money.
The widespread use of mobile devices, specifically smartphones is one of the biggest factor for the growth in this segment. Smartphones enable transactions such as ticket booking, third party money transfers and paid downloads to be conducted in a much more convenient and engaging way due to the form factor that features wider screens and touch-based friendly navigation. New Zealand at present boasts a smartphone penetration rate of 83% among those 15 years old and above, and with the increased coverage of high speed data in the country, more e-commerce transactions can now be conducted via mobile devices.
According to Frost, travel and financial services make up the largest category for the mobile commerce market in New Zealand at USD2.2 this year, followed by purchase of physical goods at around $1.2 billion. Expenditure on entertainment is estimated at $0.2 billion and media purchases, such as tickets, e-books and other digital content, is estimated at $0.3 billion, added the company. Frost also highlighted that in the last 12 months, 45% of all customers aged between 15 to 65 in New Zealand have made at least one mobile commerce purchase, indicating that more mobile users are becoming accustomed to making payments via their mobile devices on the back of increasing confidence on the privacy and security of these transactions.
"Entertainment is envisaged to be the fastest growing segment with a CAGR of 26%, with thrust from the strong uptake of paid music, movies and TV shows and games. Online news, online magazines and e-books will also display very high growth as a significant proportion of consumers move to view written content on mobile devices."
"New Zealand's shoppers are using their mobile devices to research products, check where they can buy products and whether they are in-stock, compare prices whilst in-store, get feedback from friends via social media, and purchase products. 21% of consumers frequently conduct research on products and services before coming to a retail store."
- Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice
