Hope for non-Japanese eCommerce on Mobiles

Over a year ago - on another blog - in another life -, I blogged about how mobile eCommerce was not going to happen anytime soon (despite what Phocuswright was saying at the time). I am starting to change my mind now.

A Wall Street Journal Blog post talks about "Shopping on cellphones–long a dream among e-commerce companies–is not yet a mass-market phenomenon. But some new tools could help change that picture."

Amazon is going down this path:

• Amazon.com just launched free software for BlackBerry handsets that "allows users to browse for products, read reviews, and buy on the go"
• Amazon launched a version for Apple’s iPhone last December
• “All the pieces of the puzzle are coming together. The networks are faster, the devices are better, and as a result, customers are using it more,” said Sam Hall, the director of Amazon’s mobile efforts.

EBay is also on the bandwagon: "EBay also came out with a popular app for the iPhone last year that lets users browse, buy and track auctions. EBay’s iPhone app has been downloaded 2 million times since it was released nine months ago."

While I agree that devices have gotten better and usability has certainly improved with the iPhone and other smart phones, it is not going to be the reason why people are going to start using their mobiles to buy things.

The main reason why m-commerce works in Japan is because they got the payment gateway down pat. When they buy something on their mobiles, it gets tacked on to their monthly phone bills. Easy as pie. So when they surf around and see something they like, they just click on it to buy. Maybe put in a PIN, but no need to key in 16 digit credit card, expiry date, CVV number, delivery address, etc. It's simple.

This is where Amazon and eBay come in. These apps they have already have your account on them. Remember the "One Click purchase" patent. It's simple. It's easy. The ease of purchase is what's going to kick-start mobile commerce outside of Japan.