The Index shows that while personal computers still dominate in the world of digital commerce, a steady growth in mobile transactions continues to narrow the gap in nearly all of the industries tracked by the Index. Mobile web transactions increased in Q2 across Travel (+5%), Digital Goods (+1.7%), Retail (+3.2%) and Ticketing (+5.3%). Gaming-related mobile web transactions continued to decline in Q2 (-2.5%) primarily due to an increase in in-app purchases. Adyen’s Mobile Payment Index focuses exclusively on web-based mobile payments and does not track in-app payments.
Q2 Mobile Web Share of Transactions by Industry
• Travel: PC 60.42%; Mobile 39.58% (Phone 27.24%; Tablet 12.34%)
• Digital Goods: PC 73.97%; Mobile 26.03% (Phone 20.12%; Tablet 5.91%)
• Gaming: PC 92.6%; Mobile 7.38% (Phone 5.04%; Tablet 2.33%)
• Retail: PC 70.94%; Mobile 29.06% (Phone 10.01%; Tablet 19.04%)
• Ticketing: PC 70.86%; Mobile 29.14% (Phone 21.06%; Tablet 8.08%)
In terms of transaction values, the Retail sector experienced growth from both smartphone and tablet users who increased the average amount of their purchases in Q2 by 10.1% and 5.6% respectively. Gaming showed a slight increase from smartphone users (2.1%), and Ticketing saw a 5.5% increase in average purchase size from tablet users.
Q2 Average Transaction Value by Industry/Device (vs. Q1)
• Travel: PC €201.61 (-1.5%); Phone €56.76 (-0.6%); Tablet €139.64 (-5.1%)
• Digital Goods: PC €22.63 (-1.75%); Mobile €18.02 (-2.66%); Tablet €21.17 (-3.9%)
• Gaming: PC €40.20 (+0.6%); Mobile €41.38 (+2.1%); Tablet €44.63 (-2.9%)
• Retail: PC €103.99 (+0.1%); Mobile €65.83 (+10.1%); Tablet €87.31 (+5.6%)
• Ticketing: PC €52.87 (+5.5%); Mobile €43.34 (-0.3%); Tablet €53.69 (+5.5%)
“Mobile as a sales channel cannot be ignored anymore. Every merchant selling on the web now needs to have a mobile payment strategy as well, including adapting their checkout process to the specifics of each mobile device,” said Roelant Prins, Chief Commercial Officer at Adyen. “Travel, Ticketing and Retail stand out as sectors benefiting the most from the mobile channel this quarter, as technology improvements make booking a trip or buying goods on the move easier, faster and more convenient than ever before. ”
Android Gaining Ground on iOS
The Index also revealed that the use of Android devices in mobile commerce is growing at a tremendous rate – particularly Android smartphones – but for now they do not pose a threat to iOS-based phones and tablets. Of the nearly 22% of mobile web transactions processed by Adyen in Q2, 8.3% came from an the iPad device (an increase of 6.5% over Q1 and a 12.25% increase over last year) and iPhone represented 6.6 % (6.5% over Q1 and 24% over last year). However, Android’s quarterly growth was more than double that of iOS, and its year-over-year growth dwarfed iOS. Android tablets represented 1.7% of all payment transactions, growing 13.25% over Q1 and 90% growth over last year. Android smartphones generated 5.2% of all transactions, growing 15.25% over Q1 and 104% over last year. Mobile commerce transactions on Windows Mobile and BlackBerry devices were negligible in Q2 and showed no growth.
Consumers Still Prefer Smartphones Over Tablets For Mobile Commerce
Despite the strong performance of the iPad in Q2, smartphones accounted for 11.9% of total payment transactions, versus 10% initiated by tablet device, indicating a growing preference for the device in mobile commerce. According to the Index, nearly all mobile payments growth on Adyen’s platform in Q2 originated from smartphones – except in Retail, where the tablet’s larger screen is more conducive to browsing and buying. The Retail sector is the only one in which smartphone and tablet transactions increased over Q1:
• Travel: Phone (+5.26%) Tablet (-0.14%)
• Digital Goods: Phone (+3.25%) Tablet (-1.6%)
• Gaming: Phone (-2.16%) Tablet (-0.33%)
• Retail: Phone (+0.68%) Tablet (+2.52%)
• Ticketing: Phone (+5.33%) Tablet (-0.01%)
Mobile Payments Adoption By Region
Adyen’s Q2 Mobile Payments Index also explored the growth of mobile payments transactions worldwide over the past 12 months. Europe leads the world in m-commerce transactions, with 22.7% of all transactions originating from a mobile device (12.4% phone; 10.3% tablet). This represents a nearly 40% increase from June 2013, when mobile represented 16.3% of total transactions.
In North America, mobile represented 16.9% of all transactions (10.9% phone; 6% tablet), a 48% increase over last year’s 11.4%. Asian mobile transactions accounted for 14.2% of all transactions (7.9% phone; 6.3% tablet), up 20% from 11.8% one year ago. Latin/South America, at 6.6% (up nearly 75% from 3.8% last year), was the only region to show a continued increase in tablet transactions over smartphones (2.5% phone; 4.1% tablet).
In the US, Q2 mobile commerce transactions grew 17% over Q1, accounting for 17.9% of all payments transactions, with 11.9% attributed to smartphones and 6% originating from tablets. In Q1, however, smartphones previously represented 12.4% of all payments transactions and tablets generated 5.2% -- a 4% decrease in smartphone transactions and a 15% increase for tablets versus Q2.