Study: Mobile shopping growing three times rate of overall online commerce

San Jose, Calif. - Mobile commerce is growing at nearly three times the rate of overall e-commerce. According to a new study from PayPal and Ipsos, from 2013-2016, the multi-country average compound annual growth rate (CAGR) for mobile commerce is projected at 42%, compared to 13% for overall e-commerce (including mobile commerce).



However, as a percentage of global online spend, mobile commerce is still relatively small. Smartphone purchases are driving 9% of online spend and purchases made on tablets account for only 5% of online spend. However, both are dwarfed by laptops, desktops and notebooks, which cumulatively are used for 85% of online spend.



While spend numbers might be low; the prevalence of mobile shopping is quite significant. A third (33%) of online shoppers surveyed report having purchased something via smartphone in the past 12 months, and 20% report making a purchase via tablet. The surge in smartphone commerce is being driven by young adults. A global average of 59% of smartphone shoppers are between 18-34 years old, compared to 44% of total online shoppers.



Globally, 64% of smartphone shoppers have purchased via an app and 52% have purchased via browser. Among those who have used both platforms, apps are typically preferred (47% prefer to shop through an app). When all smartphone and tablet users were asked about the benefits of using an app to pay for things either online or offline, the most cited benefits were convenience (35% of smartphone/tablet users agree this is a benefit) and speed (30%).



Currently, the most cited m-commerce related activity among smartphone owners or users is product research: 36% said they had “searched for product information on my smartphone” in the past 12 months, 27% had “used my smartphone to help locate/find information about a store or business” and 25% had “read customer or user reviews from my smartphone.”



However, when smartphone users were asked how they’d like to use their smartphones in the future (out of the things they haven’t already done), the top responses related to nascent features including payment options. Sixteen percent of smartphone users selected “tap my smartphone at the cash register to pay (e.g. using NFC)” and 15% cited “ordered ahead (e.g. coffee or food) using an app or browser on my smartphone.”



The biggest barrier to faster mobile commerce growth is that consumers don’t yet perceive the advantages over shopping on devices with larger screens. Among smartphone owners/users who have not used their smartphones to shop in the past 12 months, the top stated barriers are: “prefer to purchase online from other devices (e.g. laptop, desktop)” (selected by 39%), “the screen size is too small” (34%), and “prefer to access the Internet via other devices” (28%).



Those who have shopped via smartphone in the past 12 months state slightly different reasons for not doing so more often: “the screen size is too small” (stated by 34%), “prefer to purchase online from other devices (e.g. laptop, desktop)” (27%), and “concern about security of online purchases made from a mobile device” (21%).