Report shows that mobile commerce will see major growth through 2020
Mobile commerce is expected to see significant growth in the coming years, according to a the Mobile Checkout Report from BI Intelligence. Notably, the report contradicts others in showing that consumers are shopping via mobile browsers rather than applications. This may be bad news for some retailers, as some are beginning to develop their own mobile payments apps in an effort to effectively engage mobile shoppers. Regardless of this, however, more consumers are expected to use their mobile devices to shop online.
Mobile will account for 45% of all online sales by 2020
The report shows that mobile commerce accounted for 12% of the $303 billion e-commerce sales that were recorded in the U.S. last year. By 2020, however, BI Intelligence predicts that mobile will account for 45% of all online sales, with e-commerce sales expected to reach $632 billion that year. The report shows that adult consumers are spending more time shopping on a mobile device, but they are actually making online purchases through other channels.
Digital commerce is growing more quickly than conventional retail
The growth of digital commerce is outpacing the growth of traditional retail. According to information from the Department of Commerce, retail sales saw a 2% increase during the last quarter of 2014. By comparison, digital commerce saw 15% growth during the same time period. Mobile devices played a major role in the growth of digital commerce, as more consumers are beginning to rely on their smartphones and tablets to get their shopping done.
Retailers are having trouble encouraging consumers to actually make purchases from their mobile devices
Retailers are beginning to find it difficult to convert mobile shoppers into actual paying customers. The report from BI Intelligence shows consumers are quite willing to use their smartphones to browse for products and do research on items they may be interested in. After conducting such research, consumers often go to their computers to make purchases, as they see conventional e-commerce as a convenient way to purchase the products that they are interested in.
Google’s Bhat suggests that the company is taking a “fundamentally different approach” to the mobile payments space. Android Pay is, therefore, meant to exist as a part of the overall app experience that can be used alongside various platforms that existing in the overarching mobile payments ecosystem. One of the notably aspects of the platform is that the Android Pay app can be incorporated into other platforms that already exist, expanding its reach to consumers interested in mobile commerce.