PayPal: mobile commerce continues to rise, now accounts for 25% of all online sales
Media outlets routinely report on ecommerce as though it was cutting-edge – but in many parts of the world, it’s already evolved into mobile commerce (ecommerce on mobile phones). This evolution supports, and is supported by, the values at the core of the ecommerce revolution: convenience, speed, connectivity. And now, according to online payment giant PayPal, it accounts for an incredible 25% of all online sales! That’s up from 19% a year ago, and 13% in 2016.
PayPal’s share price has risen by 22% so far this year
SOURCE: Yahoo Finance
PayPal Australia’s managing director, Libby Roy, says that Australian businesses need to wake up to this trend. While 72% of Australian consumers regularly use their mobiles to buy items and pay bills (48% doing so on a weekly basis), almost half of Australia’s online businesses aren’t optimised to take mobile payments. Roy says they should be – as “impatient” millennials continue to drive traffic, the trend isn’t going away any time soon! Still, things are getting better.
Speaking to the Financial Review, she said: "What gives me confidence is that 55 per cent of businesses [up from 51 per cent] are now mobile-optimised – that's not enough but 87 per cent now recognise it's important. We now have many more businesses thinking about this challenge and working on how they'll tackle it. Those merchants that are mobile-optimised are taking a greater share of the business."
As ecommerce continues to evolve into social commerce (where consumers pay for products directly through platforms like Facebook and Twitter) and online marketplaces become even more ubiquitous, mobile commerce is increasingly becoming a fixture of the online world. PayPal is more than aware of the realities of this world, and Roy alludes to them, saying: "More consumers are using marketplaces to browse than search engines. When a consumer knows what they're looking for a marketplace is a very effective place to go and get a range of options and see quickly what they can get that product for." Lets hope, then, that they’re optimised for mobile!
Dominion holds PayPal in its Global Trends Managed Fund.
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