Smartphones now more popular than tablets for online retail purchases
Our latest Mobile Payments Index, which tracked mobile web payment transaction data around the world across select payment methods for Q4 of 2015, has found that for the first time, more than a third (34%) of online payments are now made on a mobile device, compared to just over 30% last quarter.
Asian payment methods driving global mobile adoption
The increase is driven particularly by major Asian-based payment methods including JCB, UnionPay, and Alipay. JCB recorded the highest share of mobile payments across all the payment methods analyzed, with 54% of payments on the Adyen platform made on a mobile device, up from 47% last quarter. Alipay increased to 44% and UnionPay to 31%.
In Europe, iDEAL (Netherlands) was steady at 49%, Open Invoice (Scandinavia) reached 47%, in Bancontact/Mr Cash (Belgium) was at 39%, and SEPA Direct Debit (Europe-wide) at 22%.
Smartphones are more popular than tablets for online retail purchases
Shoppers have generally preferred making retail purchases on tablets rather than smartphones. However, this Index shows that for the first time, smartphones have overtaken tablets as the preferred device for making for online retail purchases, at 17.5% on smartphone against 16% on tablet, compared to 14% and 17% respectively last quarter. This compares to 27% of digital goods payments on mobile against 7% on tablet, figures that are consistent with last quarter.
Smartphones lead tablets in mobile payment share across the world
Smartphones continue to grow their share of mobile payment volume, increasing 2% from last quarter to 68% on smartphone versus 32% on tablet. This trend of smartphone increasing its share has now been continuing for 10 straight quarters.
On a regional basis, smartphone use far outweighed tablet in Asia, with 29.5% of online payments on a smartphone compared to 4.5% on a tablet. Europe and the U.S. displayed a similar but less pronounced trend, with 23% of online payments on a smartphone and 11% on tablet in Europe, and 23% on a smartphone and 8% on a tablet in the U.S.
iPad has highest average transaction value
But despite the overwhelming popularity of smartphones over tablets in terms of making a purchase across both regions and verticals, one bright spot for tablets is that in terms of average transaction value (ATV) for device types, for the first time, the iPad led the way, at $107, edging out not just smartphones, but also desktop/laptop, the traditional leader, at $106. This was followed by the Android tablets at $86, iPhone at $83, and Android smartphones at $73.
The U.K. nudges 50% mobile transactions online
Among individual markets, the U.K. continues to lead the way in mobile payment adoption, with 49% of online transactions on mobile device (and just over 34% of these on a smartphone). Among other high adoption markets, the Netherlands reached 35% (23% on smartphone), and Sweden 32% (25% on smartphone).
About the Adyen Mobile Payments Index
Since June 2013, the Adyen Mobile Payment Index has tracked the rapid evolution of mobile as a payment channel, providing insight into mobile payment trends for different devices and market sectors, across selected geographies and payment methods. The Mobile Payments Index is based on Adyen’s global mobile web payment transaction data, and does not track in-app mobile payments.