Report shows that online spending will grow significantly during Christmas and Boxing Day
IMRG, an online retail association, along with Experian, have released a new report concerning the online retail spending in the United Kingdom. The report predicts that Christmas shopping will be particularly active this year, with approximately $650 million in spending coming in on Christmas Day and nearly $800 million coming in on Boxing Day, which follows Christmas. The report suggests that smartphones and tablets will be the driving forces behind holiday shopping.
Mobile commerce continues to gain momentum in the United Kingdom
Many consumers in the United Kingdom have become quite fond of mobile commerce. Using smartphones and tablets to shop online and at physical stores had once been a sort of gimmick that retailers had supported to set themselves apart from their competition. Now, retailers that do not support mobile payments in some fashion could be missing out on a major opportunity to engage consumers. As such, many retailers have begun embracing the mobile space over the past year, preparing themselves for the holiday shopping season.
Holidays may be a turning point for the retail industry
According to Powa Technologies, the holiday season will show that the retail industry must become more mobile-centric in the future. The company notes that a record $850 million was spent during Black Friday this year. This combined with the predicted $1.3 billion in online sales during Christmas and Boxing day may help retailers better understand the importance of the mobile space. As such, the holidays may serve as a major turning point for many retailers that have not yet been convinced of the value of mobile commerce.
Retailers that have mobile-centric promotional offers find more success among mobile consumers
A growing number of consumers are looking for discounts offered by retailers on their mobile devices. Some retailers have launched promotional initiatives in order to engage the mobile audience specifically. These retailers have found that they were able to attract the attention of mobile consumers more effectively, which increased mobile spending activity.
New survey shows that 30% of smartphone users plan to make mobile payments in stores
The holiday season is rapidly approaching and retailers expect to see a great deal of activity in the mobile commerce space. Some may be too cavalier with their expectations, however, as a new survey from Stratos suggests that mobile shopping is only an interest to the minority of consumers. The survey found that 30% of smartphone users plan to pay for products in physical stores using Apple Pay or Google Wallet.
The demand for in-store payment support is rising, but consumers are slow to respond to new services
In-store mobile payments are still rare, but retailers have been investing heavily in bolstering the infrastructure to support these payments over the past year. Many retailers want to see consumers use their mobile devices in their stores, expediting the checkout process and taking advantage of the mobile services that these retailers have employed. Consumers may be more prone to shop online with their mobile devices, however, rather than use their devices to purchase products in physical stores.
Lack of awareness among consumers may be the reason behind slow adoption
The survey also found that 69% of consumers do not know which retailers actually accept mobile payments in their stores. Many retailers have been sluggish in promoting their mobile commerce services, which has lead to a lack of awareness among consumers. Some retailers are not convinced that mobile commerce is a worthwhile investment. While they have taken moves to support mobile payments, they have only done so to accommodate consumer demand to a modest degree.
Consumers may favor mobile commerce as a way to avoid having their payment cards lost or stolen
The survey found that the most popular reason consumers would use mobile payments was to limit the threat of having their credit or debit card stolen. During the holidays, stores become packed with shoppers. Some seek to exploit the financial information of others by stealing their payment cards. In other cases, the commotion at stores can cause people to misplace and lose their payment cards. While mobile devices are not theft proof, consumers often keep a better handle on their smartphones than their payment cards.
