Friday , April 19, 2024

Smart Phones Increase Dominant Grip on Mobile Payments, Adyen Report Shows

Smart phones continue to dominate mobile payments made by consumers, garnering 64.1% of all such mobile transactions in the second quarter of 2015, reports the Adyen Mobile Payments Index.

That’s an increase from 61.8% in the first quarter, and handily bests mobile transactions made with tablets. The use of tablets in the same period fell from 38.2% in the first quarter to 35.9%.

Consumers favor shopping on smart phones for a number of reasons. Part of the explanation is the sheer volume of smart-phone shipments, and how consumers use tablets, Kamran Zaki, Adyen North America president, tells Digital Transactions News.

One report pegs global smart-phone shipments at 1.167 billion units in 2014, a 25.9% increase over 2013. Meanwhile, tablet shipments so far in 2015 are down 16% year-over-year, says ABI Research.

How consumers use smart phones also plays a role, Zaki says. “The phone is always with us,” Zaki says. “Tablets are more about a specific point in time, such as when the consumer is at home in the evening or at certain times during the day in the office.” The constant presence of smart phones means consumers are more apt to use them, he says.

Consumers, however, tend to make more physical-goods purchases using tablets than with smart phones, the index shows. Nineteen percent of online transactions for physical goods, such as clothing, furniture, appliances and groceries, are made on tablets, compared with 12% with smart phones.

Smart phones, among mobile devices, rule for digital-goods purchasing, accounting for 26% of online payments. Only 8% of digital-goods purchasing is done with tablets.

The Adyen Mobile Payments Index also found that Apple Inc.’s iPhone devices account for 35.6% of all browser-based mobile transactions, compared with a 28.3% share for Android smart phones.

Average transaction value varies by device type, with iPad users spending an average of $115 per transaction, compared with $93 for Android tablet users. The corresponding values for iPhones and Android phones are $82 and $75, respectively.

The number of iPhone and iPad users and their propensity to spend more than Android users warrants paying a little more attention to them, Adyen says.

Regardless of the device type, however, merchants overall have gotten better at presenting mobile-commerce sites that are more inviting and easier to use, regardless of the device type, Zaki says. “They are better experiences now.”

Amsterdam-based Adyen has produced the index since 2013 using transaction data based on global mobile-Web payments made on its network.

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