Mobile commerce to remain a niche

ALTHOUGH THE UNITED States has the largest base of cell phone users in the world, Internet-capable wireless phones will account for less than 2 percent of online shopping in the country by 2006, according to a study released this week by Jupiter Media Metrix. Less than $4 billion in shopping and travel will be conducted on Internet-capable mobile phones in the United States by that time, New York-based Jupiter said. But shopping-related content on mobile devices will influence transactions online via PCs and off-line at traditional brick-and-mortar stores -- sales that will be valued at $39 billion in 2006, Jupiter analysts predict. According to Jupiter's report, consumer interest in purchasing items using a wireless device is not a priority, with only 7 percent expressing interest in conducting transactions via a wireless phone. Cost of wireless access is a concern for consumers who already buy goods and services online, the report stated. Security also is a concern, Laszlo said. Mobile commerce will be driven by a desire for instant gratification, Jupiter added. U.S. mobile merchant revenues are expected to total only $22 million in 2001 and be driven largely by occasional sales of entertainment and airline tickets, flowers and other timely gift items.