(Source: Arnnet)

Australian consumers and their smartphones are driving the country’s ecommerce growth, with a new study predicting online commerce will grow at 12.2 percent throughout 2012.

A panel of experts earlier this month said Australian consumers were ahead of retailers in the ecommerce revolution, enjoying the benefits of a global marketplace accessible from their mobile devices.

Today a research report issued by online financial transaction facilitator, PayPal, confirmed their speculations saying Australia’s ecommerce market would reach $37.7 billion by 2013, with mobile payments expected to grow at 430 percent year on year.

PayPal Australia managing director, Frenk-Malte Feller, said ecommerce had radically changed the way people shop. “Online commerce is no longer just about having a website and we have seen more changes in the way people shop and pay in the last year than we have seen in the last fifteen,” he said.

The report shows that smartphones are increasingly prevalent among Australian consumers, accounting for 65 percent of the total handset market, and that they are heavily used to conduct online transactions. “Consumers are connecting through local, digital, social and mobile channels that add relevance and convenience to their lives,” Feller said. “Smartphones are accelerating the path to purchase by becoming a virtual store in our pockets, enabling consumers and merchants to connect in new ways.”

Last week, a research study showed Australian retailers understood the potential of online commerce and were ready to invest money in technology that would allow them to expand their business online.

Feller said merchants should invest on new business models. “Through new technologies merchants have opportunities to fast track the ‘place’ of purchase and generate new revenue streams. In the last year we have seen a wealth of new business models emerge, that are re-defining the point of purchase,” he said.

Feller also explained that retailers should fully exploit the potential of social media and applications to better connect with their customers. “For example, QR codes allow traditional media to become a virtual storefront, social media and group buying allow merchants to interact with consumers in new ways and mobile applications are personalising consumers shopping experiences,” he said.

Feller concluded that Australia’s ecommerce was gaining momentum and that innovations and growth would continue to change the way people shop.

Original Article: http://www.arnnet.com.au/article/405129/software_development_still_risky_business?rid=-100#closeme