Adyen reports a steady rise of m-commerce

Friday 29 January 2016 | 16:56 CET | Background

Over a third (34 percent) of browser-based online transactions globally are now made on a mobile device, compared to just over 30 percent last quarter, according to the 2015 Q4 edition of Adyen's quarterly Mobile Payments Index. The share has risen consistently over the last years, from less than 4 percent in the second half of 2011 to 10 percent at the end of 2012, rising to 19.5% in Q4 2013 and 26% in Q4 of 2014.

The increase is driven particularly by major Asian-based payment methods including JCB, UnionPay, and Alipay. In Asian countries, smartphone penetration is ramping up and mobile payment adoption is growing as well.

Adyen has offered those methods throughout the reported methods, but the increase in mobile usage may also reflect changes in the number and type of merchants and their customers. In Asia, the smartphone is often the preferred web enabled device. In Western European markets, many households have access to a pc, a tablet or both and smartphone penetration is stabilizing.

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 US.

These markets show a more gradual change. Open Invoice (Scandinavia and Germany) reached 47 percent, Bancontact/Mr Cash (Belgium) was at 39 percent and SEPA Direct Debit (Europe-wide) at 22 percent.

In Europe, iDeal (Netherlands) was steady at 49 percent of online payments on mobile. The banks that offer iDEAL report a higher percentage in total e-commerce of 56 percent, indicating that the Adyen user base is different from the total market.

Smartphones take lead in Retail sales

On the Adyen platform, for the first time, smartphones have overtaken tablets as the preferred device for making online retail purchases, at 17.5 percent on smartphone against 16 percent on tablet, compared to 14 percent and 17 percent last quarter. This compares to 29 percent of digital goods payments on mobile against 7 percent on tablet, figures that are consistent with last quarter. For other types of purchases, buyers still prefer a device with a larger screen.

However, in terms of average transaction value (ATV) for device types, the iPad led the way for the first time at USD 107, edging out not just smartphones, but also desktop/laptop, the traditional leader, at USD 106. This was followed by the Android tablets at USD 86, iPhone at USD 83, and Android smartphones at USD 73.

When Adyen started reporting these figures, in 2011, the iPhone was the preferred device for all mobile online purchases, but it was overtaken by the iPad for some time. Smartphones continue to grow their share of mobile payment volume, increasing 2 percent from last quarter to 68 percent on smartphone versus 32 percent on tablet.

Among individual markets, the U.K. continues to lead the way in mobile payment adoption, with 49 percent of online transactions on mobile device (and just over 34 percent of these on a smartphone). Among other high adoption markets, the Netherlands reached 35 percent (23 percent on smartphone), and Sweden 32 percent (25 percent on smartphone).

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