PayPal saw strong mobile performance across all its customer accounts over the holiday weekend, according to a company blog post.
Through the full weekend, about one-third of the company’s payment volume came from mobile devices — a figure in line with PayPal’s pre-holiday predictions.
And on Cyber Monday in particular, the firm saw “double-digit” growth in mobile payment volume, though it didn’t provide exact figures. These figures point to rising ease in mobile purchasing, but issues continue to persist.
PayPal’s Thanksgiving weekend and Cyber Monday mobile stats could shed some light on the firm’s upcoming mobile performance. PayPal’s mobile volume has been rising across the board. In Q3 2016, the firm processed over $26 billion in mobile payments, representing 30% of the firm’s total volume. That’s up from $24 billion and 28% in the previous quarter. Some of that share likely comes from PayPal affiliates, like Venmo, Braintree, or Xoom. Regardless, strong holiday volume and growth numbers are a good indicator that PayPal is poised for ongoing mobile success.
But across the board, mobile’s performance as the holiday weekend kicks off still leaves considerable room for improvement.
- Despite gains, mobile shopping still dwarfs mobile buying, which points to ongoing conversion issues. PayPal’s holiday predictions found that fewer customers planned to buy on mobile than on desktop by over half. And that’s reflected in how customers actually shopped — Adobe found that smartphones represented 45% of site visits on Black Friday, but just 25% of purchases. And though this gap is shrinking year-over-year, cart abandonment is still a real problem plaguing payments companies and retailers.
- That opens up room for innovation. In order for firms to continue to capitalize on rising mobile usage across the board, they’re going to have to work to ease some of the friction associated with mobile buying. And though tools like single-click buy buttons or simplified authentication have helped to close the gap, companies like PayPal must continue to find ways to accelerate their share of mobile buying relative to mobile browsing so that conversion rates look more like those seen on PC.
Mobile payments are becoming more popular, but they still face some high barriers, such as consumers’ continued loyalty to traditional payment methods and fragmented acceptance among merchants. But as loyalty programs are integrated and more consumers rely on their mobile wallets for other features like in-app payments, adoption and usage will surge over the next few years.
BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on mobile payments that forecasts the growth of in-store mobile payments in the U.S., analyzes the performance of major mobile wallets like Apple Pay, Android Pay, and Samsung Pay, and addresses the barriers holding mobile payments back as well as the benefits that will propel adoption.
Here are some key takeaways from the report:
- In our latest US in-store mobile payments forecast, we find that volume will reach $75 billion this year. We expect volume to pick up significantly by 2020, reaching $503 billion. This reflects a compound annual growth rate (CAGR) of 80% between 2015 and 2020.
- Consumer interest is the primary barrier to mobile payments adoption. Surveys indicate that the issue is less the mobile wallet itself and more that people remain loyal to traditional payment methods and show little enthusiasm for picking up new habits.
- Integrated loyalty programs and other add-on features will be key to mobile wallets taking off. Consumers are showing interest in wallets with integrated loyalty programs. Other potential add-ons, like in-app, in-browser, and P2P payments, will also start fueling adoption. This strategy has been proved successful in China with platforms like WeChat and Alipay.
In full, the report:
- Forecasts the growth of US in-store mobile payments volume and users through 2020.
- Measures mobile wallet user engagement by forecasting mobile payments’ share of their annual retail spending.
- Reviews the performance of major mobile wallets like Apple Pay and Samsung Pay.
- Addresses the key barriers that are preventing mobile in-store payments from taking off.
- Identifies the growth drivers that will ultimately carve a path for mainstream adoption.
To get your copy of this invaluable guide, choose one of these options:
- Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of how mobile payments are rapidly evolving.
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