With e-commerce growing and huge shifts toward mobile trends, PayPal is making sure it stays right on top of its game. The e-commerce company has been partnering up with companies like Google for mobile payments, and it is expecting to see some huge business before the year’s end. More specifically, PayPal expects to see approximately $500 million in mobile payments before 2011.
PayPal breaks things down by the numbers at Mashable:
- Our mobile transactions show dramatic growth, increasing nearly six-fold, from $25 million in 2008 to $141 million in 2009.
- We expect to close out 2010 with over $500 million in mobile payment volume, and more than 5 million members regularly using PayPal from mobile devices.
- Globally, consumers are expected to spend $119 billion by 2015 through their mobile phones, accounting for about 8% of all e-commerce activity, according to ABI Research.
- The total value of mobile payments around the world will quadruple from $170 billion in 2010 to $630 billion in 2014, according to Juniper Research.
Additionally, PayPal analyzes mobile shopping behavior versus mobile browsing, and finds what is key to keeping consumers engaged when they are looking to buy goods as well as when they are reviewing or researching their purchases:
Realizing measurable gains from engaging with these tech savvy shoppers means understanding what motivates them to complete a mobile purchase. Consider the difference between “mobile browsing” and “mobile shopping.” Applications and websites that allow customers to view the latest fashions are great for brand awareness, and maybe even getting them in the physical store, but without a mobile-specific checkout experience, they don’t yield actual sales. I call that mobile browsing because making the purchase is secondary to just looking at the item for a price tag.
Mobile shopping on the other hand, offers consumers the chance to buy something in a checkout experience catered to a mobile device and perhaps most importantly, reduces the amount of clicks it takes to finalize the purchase. This is particularly important in the context of mobile web browsers, where cutting back on content and minimizing the number of clicks is vital to keeping shoppers engaged.
PayPal also wisely notes that the holidays are coming, so these trends and figures are sure to soar. If your business has no mobile commerce strategy or plan, you’re missing out on a huge market. With a growing number of mobile applications that allow purchases within the app, and mobile browsing usage exponentially increasing (as shown with iOS and Android figures), there is a huge opportunity to be profitable by making sure your business makes it easy for consumers to make purchases or payments through your mobile site and apps.