New research from PayPal and Ipsos* shows that mobile commerce is
growing at nearly three times the rate of overall ecommerce. From
2013-2016, the multi-country average compound annual growth rate for
mobile commerce is projected at 42 percent vs.13 percent for overall
ecommerce (including mobile commerce). The research, which investigated
the mobile shopping habits of more than 17,500 consumers in 22
countries, also reveals insights on mobile shopping behavior, barriers
and growth markets.
“We are on the cusp of the mobile-first era,” said Anuj Nayar, senior
director of global initiatives for PayPal. “At PayPal we’ve seen our
mobile growth rise from less than one percent of our payment volume in
2010 to more than 20 percent in 2014.”
A Bright Future for Mobile Commerce
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
percent 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, United Arab Emirates Dominate Smartphone Shopping
China, Turkey and the United Arab Emirates dominate in smartphone
commerce. Emirati online shoppers attribute on average 24 percent of
their online spend to smartphone purchases, Chinese consumers follow
closely behind at 21 percent and Turks come in third at 19 percent. The
three also lead in smartphone-shopping density. In China, more than two
thirds (68 percent) of online shoppers have used a smartphone to make a
purchase in the last 12 months. More than half (57 percent and 53
percent respectively) of Emirati and Turks have done so.
Online Consumers Opt for Apps
Globally, 64 percent of smartphone shoppers have purchased via an app
and 52 percent have purchased via browser. Among those who have used
both platforms, apps are typically preferred (47% prefer to shop through
an app). When all smartphone and tablet users were asked about the
benefits of using an App to pay for things either online or offline, the
most cited benefits were convenience (35% of smartphone/tablet users
agree this is a benefit) and speed (30%).
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%).
Product Research Today; Nascent Features Tomorrow
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.”
Barriers to Mobile Commerce
The biggest barrier to faster mobile commerce growth is that consumers
don’t yet perceive the advantages over shopping on devices with larger
screens.
Among smartphone owners/users who have not used their smartphones to
shop in the past 12 months, the top stated barriers are: “prefer to
purchase online from other devices (e.g. laptop, desktop)” (selected by
39 percent), “the screen size is too small” (34 percent), and “prefer to
access the Internet via other devices” (28 percent).
Those who have shopped via smartphone in the past 12 months state
slightly different reasons for not doing so more often: “the screen size
is too small” (stated by 34 percent), “prefer to purchase online from
other devices (e.g. laptop, desktop)” (27 percent), and “concern about
security of online purchases made from a mobile device” (21 percent).
“With the advent of low cost mobile phones, larger phone screen sizes
and mobile device security improvements, the barriers to mobile commerce
will decrease,” continued Nayar. “Those improvements, combined with
streamlined digital payment options like PayPal
OneTouch™ will make it easier, more secure and more intuitive for
customers to pay with their mobile phone.”
*On Behalf of PayPal, Ipsos interviewed a representative quota sample of
c.800 (17,519 in total) adults (aged 18 or over) who own and/or use an
internet enabled device* in each of 22 countries (UK, France,
Germany, Austria, Switzerland, Italy, Spain, Netherlands, Sweden,
Norway, Denmark, Poland, Turkey, Russia, Israel, UAE, USA, Canada,
Brazil, Mexico, China, Australia). Interviews were conducted online
between 9th September and 3rd November 2014. Data
was weighted to known incidence of online shoppers in all countries, and
to demographic profile of internet users in 7 countries. *Desktop
computer/Laptop/ notebook computer/Tablet /Smartphone/Some other type of
mobile phone/Electronic organizer / PDA with wireless voice and data
features/Games console with Internet connectivity (e.g. Wii).
** Figures cited in this article are a global average of the 22 markets
surveyed, not weighted for population size.
About PayPal
At PayPal, we put people at the center of everything we do. Founded in
1998, we continue to be at the forefront of the digital payments
revolution, processing almost 11.5 million payments for our customers
per day. PayPal gives people better ways to connect to their money and
to each other, helping them send money without sharing financial
information and with the flexibility to pay using their PayPal account
balances, bank accounts, PayPal Credit and credit cards. With our 162
million active digital wallets, we have created an open and secure
payments ecosystem people and businesses choose to securely transact
with each other online, in stores and on mobile devices. PayPal is a
truly global payments platform that is available to people in 203
markets, allowing customers to get paid in more than 100 currencies,
withdraw funds to their bank accounts in 57 currencies and hold balances
in their PayPal accounts in 26 currencies. PayPal is an eBay Inc.
(Nasdaq: EBAY) company. In September 2014, eBay Inc. announced the
planned separation of eBay and PayPal into independent publicly traded
companies in 2015. More information about PayPal can be found at www.paypal.com
and www.paypal-media.com.
More information about the planned separation of eBay and PayPal can be
found at update.ebayinc.com.
About Ipsos
Ipsos is a global independent market research company ranking third
worldwide among research firms. We specialize in six areas: advertising
research; marketing
research; media,
content and technology research; loyalty,
quality and customer relationship management research; opinion
polls and social research; and survey
management, data collection and delivery. Our industry
specialization model means we have an intimate understanding of our
clients' brands, consumers and markets.
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