Apple Pay

Mobile Apps Drive Big Returns For UK eCommerce Market

Criteo, an eCommerce marketing tech vendor, published its latest report on mobile adoption, saying it continues to grow at record speed - and in the U.K. especially. In its 2015 Q1 report, Japan, South Korea and the U.K. – in that order - were the most advanced markets for mobile shopping. In its Q2 report, the U.K. is just in front of South Korea at No. 2.

“Consumer adoption of mobile continues to be the biggest trend in both eCommerce and advertising today, and the pace of growth remains astounding,” Jonathan Wolf, Chief Product Officer at Criteo, told .rising. “Marketers’ ability to leverage new technologies to accurately identify and reach consumers wherever they are is going to become critical as this trend continues towards a world where the majority of transactions will take place across multiple devices.”

It is not surprising that Apple chose to launch Apple Pay in the U.K. in July. First, the U.K. is the only European country which has a share of iPhone transactions significantly higher than Android. Second, the U.K. has a higher retail mobile conversion rate compared to other Western countries - due to better usability and consumer experience on mobile websites. And third, by the end of the year, Criteo forecast that growth in eCommerce will reach 40 percent globally, which is less than the U.K.'s current share at 46 percent.

The report shows that while shoppers view a similar amount of products on desktop and mobile, the add to basket rate and purchase rate is lower on a mobile device (with a 4.55 conversion rate on desktop in the U.S. versus a 2.45 conversion rate on mobile in the U.S.). In Japan, shoppers view three times more products on a smartphone than U.S. shoppers, and purchase completion in Japan is also double the amount that it is in the U.S., even though Japan's shoppers often view more products and add fewer products to their baskets.

“Delivering an engaging app experience and connecting seamlessly with consumers across multiple devices are key to capturing eCommerce sales in this new world,” Wolf said.

What will the future hold? It is worth noting that although globally smartphones are the most popular mobile shopping device, the U.K. still has more people buying from a tablet than their smartphone. That being said, the report states that smartphones will continue to displace slower-growing tablets while Apple in general will continue gaining ground on Android.

The report analyzed individual transaction data covering approximately $160 billion of annual sales across 3,000 online retailers and travel advertisers to uncover the latest trends in mobile shopping in the U.S. and globally.

To check out what else is HOT in the world of payments, click here.

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NEW PYMNTS STUDY: ACCELERATING THE REAL-TIME PAYMENTS DEMAND CURVE – NOVEMBER 2020

About: Accelerating The Real-Time Payments Demand Curve:What Banks Need To Know About What Consumers Want And Need, PYMNTS  examines consumers’ understanding of real-time payments and the methods they use for different types of payments. The report explores consumers’ interest in real-time payments and their willingness to switch to financial institutions that offer such capabilities.

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