Commentary

Mobile Shopping To $217.4 Billion By 2019

According to a new report from Javelin Strategy and Research, “Mobile Online Retail Payments Forecast 2015,” consumers spent $75.8 billion in apps and on the mobile web in 2014, up 33.68% from $56.7 billion in 2013, writes April Dahlquist, associate editor, mobile. Javelin predicts mobile retail commerce in the U.S. will grow to $217.4 billion by 2019.

advertisement

advertisement

Consumers who purchase both in mobile apps and mobile web sites accounted for 78% of mobile purchasing, or $59.4 billion in 2014. Browser-exclusive shoppers purchased $10.7 billion in 2014 and those who only bought from apps spent $5.8 billion.

Mobile in-store payments totaled $4 billion in 2014, which would bring total mobile retail payments up to $79.8 billion. By 2019, Javelin predicts consumers will pay for $54 billion in in-store purchases with mobile devices.

19% of all smartphone owners made a purchase on their smartphone within the past seven days, and 20% of all tablet owners made a purchase withinin the past week, according to the survey. Apple consumers made more m-commerce purchases in the past year than Android consumers, as 76% of iPhone consumers made purchases on their phone within the past year, and 77% of iPad consumers purchased on their tablet. 73% of Android consumers purchased on their smartphone in the past year, as did 72% of Android tablet consumers and 74% of Kindle Fire users. 

Physical goods are the most popular products purchased through mobile phones, with 51% of mobile purchasers buying such goods. This is the only product type on mobile devices to grow significantly from 2013’s purchasing levels. The increase in physical -goods over digital-goods purchases is an indication of consumers’ growing comfort with the mobile phone as a buying channel. Other popular products purchased through mobile phones include games, music, and apps.

Mobile Online Purchases

Purchase

% of Respondents Purchasing

Physical goods

51%

Games

38

Music

38

Apps

37

Ringtones

18

Source: Javelin Strategy & Research, July 2015

26% of mobile-phone owning consumers use their phones to make purchases, compared to 23% in 2013. Of consumers who don’t use their phones to make purchases 40% say the reason is that they are concerned about the security of mobile payments, concludes the report.

For additional information from Javelin, please visit here.

 

 

Next story loading loading..