Report: The Real Spend in Mobile Payments is Online
July 13, 2015
Online payments made through apps, mobile sites and mobile Web browsers continue to show strong adoption and growth and will exceed $217 billion annually by 2019, according to a new report from Javelin Strategy and Research. While mobile wallets that enable NFC payments at the point of sale hog the headlines, adoption continues to lag . One reason observers have proposed for this is, it’s no easier to tap your phone than it is to swipe your card. Online mobile payments, however, continue to get easier with a proliferation of one-touch payment methods and integrated “buy” buttons. While Apple Pay is beginning to make a dent in proximity payments, the Javelin report found consumers spend $19 through apps or mobile browsers for every $1 spent using a mobile device at the point of sale.
“As buy buttons and one-click shopping experiences gain in popularity, consumers are coming to expect low-friction checkout experiences,” said Daniel Van Dyke, research specialist at Javelin Strategy and Research. “Limiting the steps involved in checkout is critical to meet consumer expectations.”
Javelin also looked at the most popular purchases and found that 51 percent of consumers polled who made a mobile purchase in 2014 bought physical goods. Games and music each garnered 38 percent, 37 percent said they bought apps and 18 reported purchasing ringtones. The physical goods category was the only one to grow significantly from 2013.