With a record breaking $304 billion plus in domestic retail
ecommerce sales last year, the recent move by Mobile Lads Corp. (OTC: MOBO) to
acquire and begin operating the North American arm of Domark International’s
world-class web platform (http://simbadeals.com), which lists over 30 million
products from more than 400 blue chip retailers, could not be more well-timed.
More than just a unique shopping solution designed around offering consumers
the best, up to 80% off deals, on the best brands around, Simba Deals is a
well-connected destination that has key partnerships with leading
traffic-driving media venues like the top nationally distributed Canadian
newspaper, The Globe and Mail. Globe & Mail on its own has over 340k
subscriptions and nearly 900k readers for their national weekday edition (both
print and online), and the periodical has over 410k subscribers for their
Saturday edition, which has over 1 million readers. Mobile Lads will be working
hard to convert traffic into sales now that they are running the NA arm of
Domark’s established ecommerce platform, and with a 4 to 15 percent take on all
merchandise sales off the site, MOBO has stepped into what will no doubt be a
major revenue generating aspect of their future operations.
The aforementioned U.S. Commerce Department retail ecommerce
sales figure of $304 billion represents a 15.4 percent jump over 2013 sales, an
increase which, given that ecommerce has been posting similar YOY increases in
the range of 15 percent each year since 2009, should make investors stop and
really think about the bright future of this sector. The potential for
operations like Simba Deals, which emphasizes providing awesome deals that
consumers cannot find elsewhere, in a market largely dominated by a tiny
handful of players such as Amazon, is considerable. There is a great deal of
upside for an outfit like Simba Deals, which is already successfully capturing
a growing portion of the overall ecommerce traffic generated by consumers, who
are now increasingly turning away from brick and mortar retail, primarily for
the sake of convenience, as well as using their mobile devices to do so.
This is an area where Mobile Lads has their strongest
footing as a company, in the bedrock of the booming global mcommerce space,
which now represents around 29 percent of all ecommerce here in the U.S.
(Criteo) each year and which is on track to grow at an inviting 32.23 percent
through 2019 globally (where it represents 34 percent of all ecommerce),
according to analysis out earlier this year by TechNavio. Criteo’s Q1 2015
report on the sector indicates that U.S. mcommerce transactions grew by 10
percent in the last three months alone. meanwhile, in Japan and South Korea,
mcommerce has grown to a whopping half of all ecommerce, marking a clear
milestone for the growth of mobile when it comes to consumer’s preferred method
for making retail purchases. Criteo analysts forecast that by the end of this
year, mcommerce will gobble up another 4 percent of the ecommerce market in the
U.S., and another 6 percent globally.
Technologies like the xmVerify platform, a two factor
authentication based solution for real-time mobile transaction security, which
leverages one of the best cryptographic services in existence today and which
gives the end-user total control over verifying and authorizing each
transaction that is made, is way ahead of the curve when it comes to stopping
credit card fraud. Credit card fraud is predicted by many analysts to rise
sharply as we head towards normalization of the EMV (Europay, MasterCard and
Visa) chip-based standards here in the U.S., with criminals looking to get in
while the getting is good and snatch credit card details before the transition
is completed (perhaps one major explanation behind the increased data breaches
and thefts of customer information throughout the 2012 to 2014 period).
However, there are still significant weaknesses in the chip and pin EMV
protocol, as has been demonstrated via the European EMV standard that has been
in place for a decade, with poor implementations also creating significant
vulnerabilities.
Exploitations of the nonce, an “unpredictable number”
generated by ATMs to validate transactions, which cannot be distinguished from
card cloning fraud when it comes to analyzing the card-issuing entity’s logs
(and which can often be achieved even if the physical card cannot be cloned),
as well as the ability for criminals to obtain an authentic nonce from sources
like receipts, represent huge implementation vulnerabilities for chip based
EMV. Moreover, conversion to the EMV chip standard will likely ignite a
firestorm of fraud activity in “card not present” transactions like ATM,
ecommerce and mcommerce, with criminals rushing out of other forms of fraud and
into areas like using stolen card numbers to buy things online.
It is precisely here that solutions like xmVerify shine
their brightest, offering consumers an encrypted mcommerce solution that
ultimately allows them to sign off before any transaction can be executed,
requiring the thief to have stolen not just a card or information, but the
user’s mobile device as well. Given that a stolen device can be deactivated
easily from another computing platform or mobile, even incidents where, for
instance, a woman’s purse is stolen, potentially giving the thief access to all
the requisite elements, fraud can be circumvented by the user via device
deactivation, and thus halted in its tracks. Additional mcommerce technologies
marketed by MOBO, like the xmBilling platform for doing cheap and easy automated
volume-based billing, as well as xmOne, a custom card top-up solution aimed at
the college and university market, further add to the company’s appeal as one
of the more innovative players in the field today.
The combination of such compelling mcommerce technologies,
with a fast-growing ecommerce website like SimbaDeals.com, makes Mobile Lads an
extremely attractive target for investors looking to get in on the underlying
dynamics before they truly go supernova in the next few years, as even more
smartphones proliferate into ever more hands, and even more people move towards
shopping online.
Get a closer look at the company by visiting
www.mobilelads.com
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