Mobile commerce is growing at nearly three times the rate of overall e-commerce. The compound annual growth rate (CAGR) is projected to jump from to 42% in 2016.
PayPal says it has seen its mobile growth rise from less than one percent of our payment volume in 2010 to more than 20% in 2014.
The PayPal/Ipsos study says as a percentage of global online spend, mobile commerce is still relatively small: according to the research, smartphone purchases are driving nine percent of online spend and purchases made on tablets account for only five percent of online spend. However, both are dwarfed by laptops, desktops and notebooks, which cumulatively are used for 85% of online spend.
While spend numbers might be low; the prevalence of mobile shopping is quite significant. A third (33 percent) of online shoppers surveyed report having purchased something via smartphone in the past 12 months, and 20 percent report making a purchase via tablet. The surge in smartphone commerce is being driven by young adults. A global average of 59% of smartphone shoppers are between 18-34 years old vs. 44 percent of total online shoppers.
China, Turkey and the United Arab Emirates dominate in smartphone commerce.
Globally, 64% of smartphone shoppers have purchased via an app and 52% have purchased via browser. Among those who have used both platforms, apps are typically preferred (47% prefer to shop through an app).
Other unique perceived benefits of using apps by country include: “instant confirmation of payment” in Mexico (selected by 37% of Mexican smartphone/tablet users); “having a reminder to apply offers/discounts/coupons” in China (30%); and “keeping track of digital receipts” in Israel (26%).
Currently, the most cited m-commerce related activity among smartphone owners or users is product research: 36% said they had “searched for product information on my smartphone” in the past 12 months, 27% had “used my smartphone to help locate/find information about a store or business” and 25% had “read customer or user reviews from my smartphone.”
However, when smartphone users were asked how they’d like to use their smartphones in the future (out of the things they haven’t already done), the top responses related to nascent features including payment options. Sixteen percent of smartphone users selected “tap my smartphone at the cash register to pay (e.g. using NFC)” and 15 percent cited “ordered ahead (e.g. coffee or food) using an app or browser on my smartphone.”
For more data on Mobile Commerce access CardData®. For information and commentary on Mobile Commerce visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on Mobile Commerce are available exclusively through CardWeb.com.®