Newly released research by PayPal and market research firm Ipsos shows just how dramatically mobile commerce is moving ahead of traditional online commerce. For subscription businesses who have not adjusted product, conversion and payment strategies to account for this trend, they better start moving fast.
According to the study of 17,600 consumers in 22 countries, as smartphones have become somewhat ubiquitous over the last five years, purchasing on mobilenow accounts for 20% of overall worldwide ecommerce volume, up from just 1% in 2010. From 2013 to 2016,worldwide mobile commerce is projected to grow at a rate of 42%, compared to just 13% growth for ecommerce overall.
In the United States, mobile commerce is projected to grow from $54.6 million in 2014 to $96.3 million in 2016. Worldwide mobile commerce is projected to rise from $102 billion to $290 billion from 2013 to 2016, an increase of 183%.
The study also found:
- The percentage of consumers worldwide making purchases on smartphones in 2014 was 68% in China, 57% in the Ukraine, 57% in the UAE, 53% in Turkey, 46% in Mexico, 37% in Israel, 36% in France, 34% in Russia, 33% in the UK, and 31% in the US
- 64% of global smartphone users reported using an app for purchases as opposed to 52% who just used mobile browsers
- 59% of shoppers between the ages of 18-34 used mobile to shop online
- In the last 12 months, 9% of consumers used smartphones to shop while 5% used a tablet
- In the next 12 months, the numbers are projected to increase to 14% for smartphones and 7% for tablets
- Mobile is now responsible for 20% of PayPal’s total payments processed
Insider Take:
The rapid adoption of mobile devices has led to increased access in much of the world to purchase goods online. As mobile continues to grow in the United States and elsewhere, it’s important for subscription sites to grow right alongside. According to Comscore, mobile now accounts for 60% of the total time spent on the internet, up 10% year-over-year. If the user experience on your site is not mobile compatible, you are at risk of losing visitors and potential business.
More importantly, if the payment processing of your site does not support easy conversion at best, or at worst is not functional on mobile, you are at risk of leaving subscription revenue on the table. It is imperative for subscription business to plan for more of their revenue to come from those using mobile devices and adjust accordingly.
