April 22, 2015
The value of commerce transactions conducted via mobile handsets/tablets will exceed $120 billion by 2017 with 150 million users. Mobile commerce growth is driven by increasing convenience, value and security available to consumers via smart devices. Retailers are bringing efficient mobile websites/apps to their customers and even delivering omni-channel experiences.
Considering social demographics, it was observed that women account for a majority of online purchases. But, when it comes to online purchases via mobile channels i.e. m-commerce, men are turning out to be the majority, as reported by BI Intelligence. A recent study by DDB Worldwide has highlighted some interesting facts concerning customer demographics and online commerce:
> 22% of men shopped online using their smartphone as compared to 18% of women
> 20% of men made purchases via tablets as compared to 17% of women
> 40% of men agree that they would likely make purchases online as compared to 33% of women
M-commerce accounted for 15 – 17 percent of retail e-commerce sales in 2013, highlighting the huge opportunity for m-commerce, in both online and in-store. Transaction value per tablet buyer, per year, would overshadow that of the smartphone buyer. Both devices are important for discovery, payment, deals, and offers. PoS mobile payment value is projected to grow exponentially. LTP had also released a report providing further insights on the impact of m-commerce on the overall commerce ecosystem.
In 2015, mobile payments in the U.S. are expected to grow significantly, along with a corresponding increase in mobile commerce. Gartner Inc. predicts that by 2017, U.S. customers’ mobile engagement behavior will drive mobile commerce revenue in the U.S. up to 50% of U.S. digital commerce revenue. A recent Gartner survey found that mobile commerce currently generates 22% of digital commerce revenue. LTP also released a report highlighting how US consumers conduct mobile commerce, bringing in strategic implications for retailers and merchants.