Concerns over mobile payments continue to linger as merchants wonder if they really offer that much convenience and consumers worry about security. But according to global payments tech company Adyen, that hasn't kept the needle from moving when it comes to Web-based transactions.
The company released its quarterly Mobile Payments Index this week, and results showed that U.S. adoption of mobile online payments is growing faster than in other regions, while the U.K. still leads the way in terms of pure volume.
In the U.S., 26.7 percent of all online payments were made on a mobile device, a 5 percent growth over the previous six months. Europe only showed 2 percent growth, but mobile accounted for 28.6 percent of European online payments, and 44.4 percent of online payments were completed via mobile in the U.K. during the first quarter of 2015. Mobile payments also constituted 20 percent of digital transactions in Asian markets for the first time, no doubt helped by the efforts of big companies such as Alibaba that are promoting m-commerce.
"Mobile payment momentum shows no sign of slowing in the U.S., with a steady increase this quarter and 5 percent growth over the last six months," said Kamran Zaki, Adyen's North American president, in a press release. "This level of growth indicates that these relatively new platforms are still fundamentally changing the way people transact online, and we look forward to continuing to track and analyze how these changes impact merchants and consumers."
Overall, global online mobile payments rose to 27.2 percent of digital transactions, a 39 percent increase year-over-year.
Adyen also shared insights on what platforms shoppers are making these payments on, and at what value. Digital spend as a whole rose 28 percent on laptops and desktops, and 30 percent on tablets. Smartphones showed the biggest growth with a 37 percent year-over-year leap, but tablets ultimately spurred the greatest average transaction value for the first time, ringing up at €32.66.
Still, when it comes to pure volume, smartphones rule the roost. In Q1 of 2014, smartphones made up 10.9 percent of online transactions, compared to tablets, which made up 9.3 percent. In Q1 of 2015, smartphone share increased to 16 percent, while tablet share increased to 11.5 percent, a gap increase of nearly 300 percent. Desktop share, on the other hand, dropped from 79.8 percent of online transactions to 72.5 percent.
"Tablets may well be approaching market saturation, but thanks to retailers and businesses focusing on optimizing the payment process for the channel, they are attracting increasing spend as consumers become more comfortable using these devices to pay for things online," said Roelant Prins, Adyen's CCO, in a company statement. "There has been a seismic shift in how and where people are comfortable spending money. All mobile channels in the past 12 months have experienced impressive uplift."
-See this Adyen press release
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