January 26, 2016
I am a big fan of Adyen Mobile Payments Index. I think every payment company should release such statistics. Adyen has been doing it since 2013 and the global payments technology company, today published the 2015 Q4 edition (Sept-Dec) of its quarterly Mobile Payments Index, which tracks mobile payment data from browser-based transactions across Adyen’s customer base. The key finding of this Mobile Payments Index is that for the first time, over a third (34%) of browser-based online transactions globally are now made on a mobile device, compared to just over 30% last quarter.
~ For the first time smartphones more popular than tablets for online retail purchases
~ iPad records highest average transaction value, ahead of laptop/desktop
Asian payment methods driving global mobile adoption
The increase is driven particularly by major Asian-based payment methods including JCB, UnionPay, and Alipay. JCB recorded the highest share of mobile payments across all the payment methods analyzed, with 54% of payments on the Adyen platform made on a mobile device, up from 47% last quarter. Alipay increased to 44% (up from 35%), and UnionPay to 31% (from 23%).
Mobile payments, both in app and browser-based, are driving the growth of ecommerce, and this trend is particularly noticeable by the acceleration in mobile payments for methods such as JCB and Alipay, said Roelant Prins, Chief Commerce Officer, Adyen. As mobile become the primary way for global shoppers to go online, and payment methods such as JCB see over half of online payments on mobile, the era of a mobile-first approach to payments is upon us.
In Europe, iDEAL (Netherlands) was steady at 49% of online payments on mobile, Open Invoice (Scandinavia and Germany) reached 47%, Bancontact/Mr Cash (Belgium) was at 39%, and SEPA Direct Debit (Europe-wide) at 22%.
Smartphones now more popular than tablets for online retail purchases…
Shoppers have generally preferred making retail purchases on tablets rather than smartphones. However, the Index shows that for the first time, smartphones have overtaken tablets as the preferred device for making online retail purchases, at 17.5% on smartphone against 16% on tablet, compared to 14% and 17% respectively last quarter. This compares to 29% of digital goods payments on mobile against 7% on tablet, figures that are consistent with last quarter.
..and lead tablets in mobile payment share across the world
Smartphones continue to grow their share of mobile payment volume, increasing 2% from last quarter to 68% on smartphone versus 32% on tablet. This trend of smartphone increasing its share has now been continuing for 10 straight quarters.
On a regional basis, smartphone use far outweighed tablet in Asia, with 29.5% of online payments on a smartphone compared to 4.5% on a tablet. Europe and the U.S. displayed a similar but less pronounced trend, with 23% of online payments on a smartphone and 11% on tablet in Europe, and 23% on a smartphone and 8% on a tablet in the U.S.
iPad has highest average transaction value
But despite the overwhelming popularity of smartphones over tablets in terms of making a purchase across both regions and verticals, one bright spot for tablets is that in terms of average transaction value (ATV) for device types, for the first time, the iPad led the way, at $107, edging out not just smartphones, but also desktop/laptop, the traditional leader, at $106. This was followed by the Android tablets at $86, iPhone at $83, and Android smartphones at $73.
The U.K. nudges 50% mobile transactions online
Among individual markets, the U.K. continues to lead the way in mobile payment adoption, with 49% of online transactions on mobile device (and just over 34% of these on a smartphone). Among other high adoption markets, the Netherlands reached 35% (23% on smartphone), and Sweden 32% (25% on smartphone).
About the Adyen Mobile Payments Index Since June 2013, the Adyen Mobile Payment Index has tracked the rapid evolution of mobile as a payment channel, providing insight into mobile payment trends for different devices and market sectors, across selected geographies and payment methods. The Mobile Payments Index is based on Adyen’s global browser-based mobile payment transaction data, and does not track in-app mobile payments.
Adyen is a technology company that provides businesses with a single solution to accept payments anywhere in the world. The only provider of a modern end-to-end infrastructure connecting merchants directly to Visa, MasterCard, and 250 other payment methods globally, Adyen delivers frictionless payments across online, mobile, and in-store. Headquartered in Amsterdam and San Francisco, with offices across North America, South America, Europe, Asia and Australia, Adyen serves more than 4,500 businesses, including 7 of the 10 largest U.S. Internet companies. Customers include Facebook, Uber, Airbnb, Netflix, Spotify, Dropbox, Evernote, Booking.com, Yelp, Vodafone, Superdry, Mango, Crocs, O’Neill, SoundCloud, KLM and JustFab.