Mobile Devices Not Quite Ready for Payments, But Impact Purchases

  • Mobile payments have yet to see major traction. In fact, only one percent of mobile consumers in the UK have ever used a mobile handset to pay at a retail store, according to a new report from Deloitte.
  • However, mobile devices are still being used in stores and have increased retail sales.
  • “In the U.S. Deloitte says that using apps and mobile websites while shopping accounted for a 5 percent bump in retail sales, equating to $159 billion in in-store sales,” TechCrunch writes, noting this percentage increase was also seen in the UK but for lower dollar value.
  • “Fueled by the rise in apps and mobile websites catering to shoppers, as well as smartphone ubiquity, Deloitte forecasts that the impact of smartphones on retail in the U.S. will rise to 17-21 percent — working out to $628 million – $782 million in sales by 2016,” the article continues.
  • The report found that 46 percent of smartphone owners used their devices to research products before visiting the store or while they were shopping.
  • This research influences purchases and, “as Deloitte points out, this is a call to retailers to sort out better mobile experiences for their users, even if they are not directly linked to making purchases, and only to carry more information about the products,” TechCrunch reports.
  • Electronics purchases are most affected by mobile usage, while mobile has little effect on convenience stores and supermarkets.
  • As for mobile payments, Deloitte says, “until more contactless technology gets adopted at the retail end, this is bound to remain on the sidelines.”

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