According to Goldman Sachs, an estimated 535 million people across the globe will make at least one purchase via mobile device this year. Tablets are anticipated to play a massive role within the next few years as consumer spending via mobile is expected to go from $204 billion in 2014 to over $620 billion by 2018. The firm believes that smartphone and tablet web-based sales in 2018 will almost equal web sales in which consumers made purchases via desktops, laptops, smart TV’s and gaming systems within the past five years.
Factors That May Cause Mobile Payments to Spike in 2015
Mobile commerce has been on the rise for several years now across many different sectors, changing the way we book flights, check in to a hotel, rent a car, search for the best retail deals and navigate to our favorite restaurant. Readwrite.com predicts that mobile commerce is on the rise as a result, and that mobile sales will account for $204 billion in sales this year. However, there are specific things consumers are looking for in their buying experiences, which could affect the true outcome of mobile payments. Consumers are looking for straight-forward buying solutions like never before, as companies like Trunk Club, Uber and YPlan have set the new standard.
Obstacles That Stand in the Way of Mobile Sales
Bill Ready, CEO of Paypal unit Braintree suggests that there are still major hurdles that could prevent the ease of transaction consumers are craving this year. For example, many online shopping sites still do not fully integrate into a sufficient mobile viewing experience, and almost all across the board, customers are still required to enter their contact, billing and credit card information in order to make a purchase. Ready believes if there is not a tremendous push for digital wallets this year, mobile sales may unexpectedly dwindle. Convenience and security may be two important components for the mobile payment trend to become as successful as other web-based payment methods.
Wearables May Make the Biggest Shift in Mobile Payments in the Future
The wearable technology phenomenon is quickly growing, mainly due to the convenience factor. Mobile Commerce Press believes that convenience could be taken to a completely new level as smart watches and wearable devices evolve in the near future. The organization expects to see smart glasses that enable an individual to make a purchase online by activating a feature with eye movement. While some believe this concept is futuristic in nature, imagine how unbelievable it would be if a person could simply look at a product and make a purchase by blinking their eye!
The Numbers Don’t Lie
Instead of looking at potential dilemmas that might affect mobile payments in a negative light, consider research provided by Retail Science:
- Amazon announced that mobile shoppers made up for almost 60% of last year’s holiday sales
- On Christmas Day 2014, Apple users purchased average orders of $97.28 and Android users purchased average orders of $67.40
- Phone screen sizes have increased 88% since 2007, resulting in consumer’s resorting to their phone for shopping rather than their laptops
The organization believes that mobile commerce will grow this year, just as phone screen sizes continue to grow. With numbers like that, it’s hard to imagine we won’t see the biggest mobile payments numbers to date this year.