Big spenders: UK leads mobile payments in Q214


Adyen’s latest Mobile Payments Index shows that the UK is ahead of the game with almost twice as many mobile payments made in the UK compared to the global average

Mobile payments in the UK during the second quarter 2014 were significantly higher than for the rest of the world, according to figures from provider of global payment solutions, Adyen.

In the second quarter of this year on average mobile web payments accounted for almost 22% of all transactions on Adyen’s network worldwide. This represents a 9% increase over the first quarter and a 33% increase on June 2013.

Looking specifically at the UK, mobile payments stand at 39%, significantly higher than the global average and demonstrating growth of more than 5% over the first quarter 2014.

Findings from Adyen’s latest global Mobile Payments Index covering the period of April through to June 2014 show that nearly 72% of all Adyen merchants are processing payments over the mobile web, up from 70% in the first quarter.

Adyen is seeing its UK retail customers in particular focus on driving conversion in the increasingly popular mobile channel, which is contributing to the high volume of mobile transactions occurring in the region.

The global average mobile web share of transactions for the retail vertical is just over 29% for the second quarter, an increase of 3.2 percentage points from the first quarter and 2.9 percentage points up from the fourth quarter 2013.

Second quarter mobile web share of transactions by industry are led by the travel market: Travel – PC 60.42%, Mobile 39.58% (Phone 27.24%, Tablet 12.34%); Ticketing – PC 70.86%, Mobile 29.14% (Phone 21.06%, Tablet 8.08%); Retail – PC 70.94%, Mobile 29.06% (Phone 10.01%, Tablet 19.04%); 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%).

The Index shows retail shoppers in particular to have an appetite for larger screen devices, with retail standing out as the only vertical to see the volume of mobile payment transactions grow from the first to the second quarter across both tablets and smartphones, up by 2.52 and 0.68 percentage points respectively.

In the other verticals tracked by the Index, tablets as well as desktop computers lost share to smartphones in the second quarter. The exception is the Gaming vertical, where all mobile web transactions declined, primarily due to a rise in in-app purchases (Adyen’s Mobile Payment Index focuses exclusively on web-based mobile payments and does not track in-app payments).

Second quarter mobile device usage changes in percentage points in vertical markets compared to the first quarter are: 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%.

“In the UK market, our retail customers lead the way in recognising the importance of the mobile channel,” said Myles Dawson, UK country manager at Adyen. “In particular, they are looking to capitalise on the rise in preference for large screen devices, which are more conducive to browsing and buying articles based on their design and individual features, such as clothes or electronics. Mobile conversions are front of mind, and we’re seeing customers innovate around how they integrate mobile with their broader e-commerce strategy, including in-store, and streamline the experience across all channels and platforms.”

The retail sector uniquely experienced growth in transaction value from both smartphone and tablet users in the second quarter, up by 10.1% and 5.6% respectively. Gaming showed a slight increase in average purchase size from smartphone users (2.1%) and Ticketing saw a 5.5% increase from tablet users.

The average transaction value by industry in the second quarter versus the first quarter were: 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%)m, 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%).

The Index 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.

In the second quarter 8.3% of all transactions came from an iPad, an increase of 6.5% over the first quarter and a 12.2% increase over last year, and the iPhone represented 6.6 %, which is 6.5% above the first quarter and 24% over last year.

However, Android’s quarterly growth was more than double that of iOS, and its year on year growth dwarfed iOS. Android tablets represented 1.7% of all payment transactions, growing 13.25% over the first quarter and 90% growth over last year.

Android smartphones generated 5.2% of all transactions, growing 15.25% over the first quarter and 104% over last year. The UK is seeing Windows Phone transactions creeping up from 0.2% in January 2014 to a steady 0.3% from February onwards, compared to a global average of 0.1% for the operating system.

In the UK in June, smartphones represented 24.1% of all transactions and tablets 14.8%, in both cases growing by one percentage point over the first quarter average percentage.

Europe generally 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 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).


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