The mobile phone is well established as a means of payment and for making purchases

The mobile phone is the queen of the technology industry. Those multifunction devices computers permanently supplanted as work, communication and entertainment tool. The development of financial applications and services has increased their importance in people’s daily lives, which change their habits and customs. The most recent is the ability to make payments and expenses. We have entered the era of “Mobile purchase”connoisseurs warn.

“Cell phones are shopping”precisely, it was the axis of the dialogue organized by Clarione which took place last Thursday, and which is part of the cycle “The world to come”which has the main support of OSDE, Telecom and DESA, in addition to the sponsorship of Afarte.

On this occasion Gustavo Sambucetti, of the CACE (Chamber of Electronic Commerce); the director of House of Cholas, Carmela Bustelo; Axel Marinsek, by Wunderman Thompson Argentina and Chile; Ana Vainman, by Afarte and Astrid Mirkin, by Rappi. The jury was led by two journalists from Clarione: the director of Economics, Daniel Fernández Canedo, and Martín Grosz.

The pandemic has given a significant boost to e-commerce. According to the consulting firm Kantar, online billing increased by 73% in the first half of 2022 compared to the same period of the previous year e ECommerce already accounts for 14% of total sales. Sambucetti provides another fact: “$ 6 out of 10 was made with a smartphone,” she said.

Mobile telephony floods everything, aided by technological advances and the emergence of service apps, especially delivery. “We are facing an increasingly demanding consumerwhich wants more, to be faster and more efficient, “says Mirkin. This did not happen overnight, but this evolution took place on two pillars: the high penetration of cell phones (almost everyone over the age of 12 has at least one) and the gradual change in purchasing methods.

Vainman describes that “major innovations in cell phones are spreading.” As far as e-commerce is concerned, you said that “the important thing is to have a camera to read the QR and a fingerprint reader“. Both technologies “are already present in almost all devices, even low-end ones,” he said.

Specialists underline that this new scenario, crossed by smartphones and the proliferation of social networks, constitutes a challenge for companies and brands. “We have to accompany him so that the sale takes place and so that the customer is happy and chooses us again”, explains Bustelo.

What has changed is the logic of buying and paying online, and mobile phones are gaining ground in this respect. Sambucetti believes that there are two barriers to development: “The fear that people would have to pay onlinefrom a computer or mobile phone, and the second is that mobile payment interfaces were far less friendly”, He lists.

Electronic money is growing rapidly. Mercado Pago (the fintech of Mercado Libre) launched the QR code in 2018 and that payment channel, today, constitutes the market standard and almost all portfolios include this option. The same goes for social networks, including Facebook and Twitter. For all of this, “the consumer has a lot more decision-making power than companies,” says Marinsek.

This specialist adds that, for this reason, “brands need to understand the customer; understand where they are, what are the interests of that customer and how to identify him with the brand and find him where he is in the end “. What is in question is the true influence and reach of traditional advertising. It is no coincidence that there is already talk of “social commerce”. Nearly 4 billion people spend an average of 2.5 hours a day on social media.

Can a company or a brand do without what happens and is commented on on Instagram, for example? The question raises the risks of bypassing user discussions and chats about a product or service. Mirkin points out that consumers take this into account 3 factors to buy: “The variety of the offer, the prices and delivery times of orders”, he says. He adds that in Rappi “23% of users already make scheduled purchases via their mobile phones”. Planned shopping is usually what is done in supermarkets.

ECommerce was growing before the pandemic, but purchases were made with computers. Sambucetti points out that during the pandemic they united 1.3 million new users, but “in 2021 another 670,000 were added and this on a broader basis”. A study by Wunderman Thompson revealed that online shopping on a global scale will exceed 50% of total sales in the short term.

Sambucetti believes that the development of eCommerce depends on three main factors: “The technological offer, the means of payment and logistics. But in this last aspect there is an exceptional balance ”, said the director of the CACE. However, he points out that companies are striving to solve it. “In the last year, 35% of companies have rented or reassigned square meters of storage to the online channel. The development of logistics makes it possible to respect the delivery times of orders, because the technology goes faster than the physical package ”, he concluded.

More than a promise, mobile shopping is a reality. In addition to the greater influence of social networks, or behind, sophisticated algorithms are created to detect the interests and intentions of consumers. Businesses use AI to transform the way they do business, from forecasting trends and scheduling delivery to where AI communicates with a customer.

A figure emerging from the Accenture study indicates that there are currently 85% of consumer interactions with customer service based on artificial intelligence. “Argentine consumers are the first and fast users of different technologies. What we see is that people are encouraged to try each new proposal quickly, “says Mirkin.

Marinsek completes: “The pandemic has increased people’s anxiety and now they are much more expected. It requires quicker attention when a problem arises. ”You no longer have to sit in front of your computer to make a complaint. Now you have a mobile phone that’s always ready to answer questions, anytime, anywhere.

ECommerce does not stop its growth

E-commerce has definitely taken off. Although it no longer has the momentum of the pandemic and compulsory confinement, online shopping continues to grow, according to private sector statistics. One of these refers to the latest Hot Sale, the festival of offers and discounts that this year took place between May 30 and June 1 and marked records in participating companies and users.

“In this latest edition, 1,091 companies participated, of which 200 joined for the first time”, explains CACE, the organizing body. In the 3 days “sales of products and services were achieved for a total of 42,000 million dollars, which represent turnover up by 69%. compared to last year’s hot sale.

Another recent study, prepared by the consulting firm Kantar, indicates this in the first half of the year online billing increased by 73% Compared to the same period last year, versus an accumulated inflation year over year of 64%. Although the highest transaction rate was recorded during the pandemic, “the online channel continues to grow”.

Almost 91.3 million orders were placed between January and June of this year (14% more than in the same period of the previous year), which represented 134 million products sold (an increase of 11%). Therefore, 14% of retail sales are done through eCommerce, says the Kantar survey. There is another relevant aspect and it is the greater incidence of cell phones.

According to the study, “58% of purchases were made with mobile devices” and concentrate 74% of the traffic that corporate portals and sales sites have in the various marketplaces.

As for the categories, the online sales ranking is led by the food and beverage category. Then the house, furniture and garden appear, in the 3rd place cars, motorcycles and accessories for vehicles; cosmetics and beauty; followed by hygiene and personal care. The top ten is complemented by appliances, cell phones and telephones, sportswear, tickets and tourism and, finally, tools and constructions.

On the expectations, “64% of the companies interviewed believe that the e-commerce activity will improve in the second half”. Continue the mode by adding new users: “5% of Argentines bought for the first time in 2022“, Indicates the study, adding that” 59% of buyers are between 27 and 56 years old “.

The growth of digital purchases is a global trend. The results of a study conducted by Wunderman Thompson Commerce reveal that online shopping on a global scale will exceed 50% of retail sales in the short term. The report found that confidence in virtual shopping is also growing. 85% of people surveyed believe eCommerce will be even more important, while 60% say they feel comfortable using technology in daily shopping.

In terms of trends, he also points out that the mobile phone increases its participation as a vehicle for making purchases and visits to virtual stores. “Currently, $ 6 out of 10 billed online is done through a cell phone,” she said in a segment of the speech. Clarione.