It’s been just over six years since the first-generation iPhone was introduced on June 29, 2007, to mostly positive reviews. In this video analysis from major tech publication CNET, most of the discussion surrounded the phone’s ability to replicate the functions of a traditional cell phone and Apple’s then-popular iPod.
One notable topic that wasn’t discussed was how users would make purchases on what was to become one of the world’s first popular smartphones.
Fast forward to 2013, and mobile payments are a multi-billion dollar industry. As of 2012, eCommerce software provider Invesp indicates $24.66 billion in purchases were completed on mobile devices. These transactions accounted for 11 percent of all eCommerce purchases. But, this market share is expected to grow dramatically.
The full growth, and potential, of mCommerce is on display in a new infographic from Invesp that illustrates how the mCommerce market is expected to grow and alter by 2016. In this PYMNTS.com Data Point, we’ll break down the figures so you can see the role mCommerce will play in online retail will change in the coming years.
mCommerce Today
By the end of 2013, tablet-enabled purchases are projected to be a $24 billion market, up from 13.86 billion in 2012. Smartphones are a clear second place. The handheld devices are expected to account for 13.44 billion in mobile spending in 2013, rising from the $9.86 billion observed the year before.
Consumers spend most of their time – 27 percent – shopping with the help of retailer apps. These apps are also the fastest growing sub-category in mCommerce. In 2012, spending on retailer apps increased 525 percent.
mCommerce In 2015 And Beyond
By 2015, researchers said 81 percent of U.S. consumers will own smartphones. Of these owners, 62 percent will buy physical goods at least once every six months. Businesses will be close to fully implementing mobile as well, with 48 percent having a mobile-optimized website.
By 2016, mCommerce will account for 24 percent of total eCommerce sales, or $86.8 million worth of Americans’ total eCommerce expenditures. Researchers expect mCommerce to grow by 3 percent each year starting in 2013, when it will comprise 15 percent of all eCommerce purchases.
Like today, the majority of transactions will be made on tablets. By 2016, the gap between smartphone and tablet spending is expected to wide substantially, with tablet sales totaling $61.06 billion in 2016 and smartphones accounting for $24.32 billion in spending.
For more insights into how mCommerce will grow in the coming years, view the complete infographic here.
