Shoppers spent $75.8 billion using mobile apps and browsers in 2014, nearly a 25 percent jump from the year before. By the end of 2015, m-commerce is expected to reach $93.6 billion, according to new research by Javelin.
Total mobile online retail payment volume more than tripled from 2012 to 2014, according to Javelin's Mobile Online Retail Payments Forecast.
Much of the discussion around mobile today is about how retailers and brands can better connect with shoppers and grow loyalty, but the report indicates that consumers are also buying from their mobile devices in increasing numbers.
More than one in four mobile phone owners (26 percent) make mobile online retail purchases today. Subscription-based music and video services such as Hulu, Netflix, Spotify and Pandora account for much of this traffic. But, physical goods are the most popular products purchased through mobile phones, with 51 percent of mobile purchasers buying such goods.
"The increase in physical-goods over digital-goods purchases is an indication of consumers' growing comfort with the mobile phone as a buying channel," the report stated.
Nearly three-quarters of mobile payment commerce, or $59.4 billion, is generated by mobile shoppers who use both apps and browsers. Purchasers using mobile browsers exclusively totaled $10.7 billion in payment volume, while mobile-app exclusive purchasers spent $5.8 billion. Including the $4 billion spent through mobile wallets at the point of sale, the total mobile retail payment market totals $79.8 billion.
The report's authors make a series of recommendations intended to help grow mobile purchases including making those purchases easier. Retailers that implement biometric security, simplify the checkout process with a one-click solution, build a cohesive digital wallet and allow shoppers to easily store credit card information with the smartphone's camera, all stand to increase shopper engagement and purchases.
-See this Javelin press release
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