36% of Global Mobile Payments are Now on iPhone, and More From Adyen Index Report

July 9, 2015     By : Amit

Adyen, the global payments technology company, yesterday published its quarterly Mobile Payments Index (MPI), which tracks mobile payment data from web-based transactions across Adyen’s customer base. This index report is published by Adyen every quarter and provides some amazing insights. Adyen also raised a significantly large round of investment ($250 M) in December last year. Key takeaways from the report are:

1. The Index revealed that iPhone devices account for a massive 35.6% of all browser-based transactions made using mobile devices, and are now used for 10.2% of all global online transactions, up from 8.6% at the turn of the year.

2. Conversely, having once dominated the mobile payment scene with almost 50% market share in March 2013, iPad transactions now account for just 28.5% of all browser-based mobile transactions.

3. Browser-based payments on Android smartphones have been growing roughly in parallel with the iPhone since September 2014.

4. Mobile’s total share of online payments is up from 27.2% in Q1 2015 to 28.7% in Q2.

Mobile Payments by Devices

Smartphones now undisputed king of mobile transactions (we told you)

The Adyen MPI shows that in terms of transaction volume, smartphones emphatically rule, increasing their lead from 61.8% of all mobile transactions in Q1 to a total of 64.1% in Q2. And it’s not only due to the iPhone. Android smartphones continue to grow their share of mobile transaction volume, increasing from 27.2% in the first quarter of 2015, to 28.3%. By contrast, the use of tablets over the same period has dropped from 38.2% in Q1 2015 to 35.9% as of June 2015.

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iOS users spend more per transaction than Android users 
For the first time, this quarter the Mobile Payments Index tracked average transaction value (ATV) by device type. It found that shoppers using an iPad spend an average of €104 per transaction, significantly higher than the ATV for Android tablets at €84. ATV across smartphone operating systems echoed this trend, with iPhones having an ATV of €75 compared to an Android ATV of €68.

“The continued rise in popularity of the iPhone for making online purchases, coupled with the higher ATV from shoppers using iOS, suggest that businesses – especially those that classify themselves as premium brands – should target this valuable demographic in particular,” said Roelant Prins, Chief Commercial Officer, Adyen. “Apple Pay, as it becomes available in more markets, represents a great opportunity for businesses to fulfil this as it enables them to deliver a seamless payment experience to iOS users.”

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Tablets win retail, smartphones rule for digital
Against the backdrop of the steady rise of smartphone transaction volume, when it comes to physical goods (including items such as clothing, furniture, appliances and groceries) mobile shoppers still prefer to buy on tablets. In fact, 19% of online transactions for physical goods are on a tablet, compared to 12% on a smartphone.

However, for digital goods (including games, services like club memberships, hotel reservations, and tickets), the opposite is true, with smartphones accounting for 26% of online payments, up from 21% at the beginning of the year. By contrast, only 8% of digital goods were bought on a tablet this quarter.

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Europe continues rapid adoption
In terms of regions, Europe led the way in Q2 (30.4%), followed by North America (26.7%) and Asia (21.4%). All these regions increased their share of mobile payments by approximately one percentage point from last quarter.

In terms of individual markets, the UK continues to leave the rest of the world in its wake. In Q2 2015, 44.8% of online payments in the UK were made using a mobile device, up almost 2 percentage points from the beginning of the year. If the current trend persists, the UK may surpass the 50% mark for mobile transactions midway through 2016.

“The big news dominating payments in the UK this quarter is the launch of Apple Pay. Our findings show that with the sky-high popularity of mobile payments and high penetration of iPhones in the market, in the UK Apple Pay offers a unique opportunity for businesses to connect with an affluent shopper demographic that is already used to making purchases by mobile,” Myles Dawson, UK Country Manager, Adyen.

iOS and Android pretty much rule the mobile payments scene. With iPad + iPhone together leading devices.

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About the Adyen Mobile Payments Index

Since June 2013, the Adyen Mobile Payment Index has tracked the rapid evolution of mobile as a payment channel, providing insight into mobile payment trends for different devices and market sectors, across selected geographies.  The Mobile Payments Index is based on Adyen’s global mobile web payment transaction data, and does not track in-app mobile payments.

About Adyen

Adyen is a leading payments technology company that provides businesses a single global platform to accept payments anywhere in the world. Driven by a vision to improve customer experience, streamline processes and ultimately increase revenue, Adyen enables businesses to process payments across online, mobile and Point-of-Sale (POS) with over 250 payment methods and 187 transaction currencies. Headquartered in Amsterdam and San Francisco, with offices across North America, South America, Europe and Asia, Adyen serves more than 3,500 businesses and four of the five largest U.S. Internet companies, including well-known brands such as Facebook, Dropbox, Airbnb, Netflix, Spotify, Groupon, Evernote, Booking.com, Viagogo, Yelp, Vodafone, Mango, O’Neill, SoundCloud, KLM and JustFab.

 

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Amit

Amit is the Co-Founder & Chief Curator of Let's Talk Payments. He has a strong background in strategy and market analysis and has advised dozens of clients (ranging from startups to Fortune 500) in payments, commerce and technology. His vision with LTP is to provide the same level of analytical rigor that analysts put into their work and combine it with Content 2.0 technology to offer unparalleled satisfaction for readers in this space.

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