As many as three quarters of shoppers are making mobile purchases each month, and 64% say they would be willing to make purchases on wearables if they had one, according to research by e-commerce provider Avangate.
Despite this – and the fact that some 26% of consumers are spending a least a third of their disposable income on recurring online purchases, Avangate warns that businesses are still losing out on billions of dollars thanks to revenue leakage and missed opportunities.
Mobile is growing in popularity as a way to pay thanks to its ease of use. Conversely, credit card failure and clumsy payments processes mean customers don’t get the services they want online and so don’t spend where they would, says Avangate.
In fact, 38% say payment experiences directly impact their willingness to make repeat purchases. Mobile services that require data entry are most inconvenient, with a quarter of consumers saying this would put them off using them.
However, the rise of Apple Pay and Samsung Pay are likely to make using mobile to pay for things even easier and could well propel mobile payments into being the payment mechanism of choice for most consumers. The convenience and ease they potentially offer could cure most of the ills associated with payments online, on mobile and in store.
This is likely to extend in spades to wearables which could make payments even easier with NFC or simple one click payment online.
“Today’s companies need to understand how their brand and unique value propositions embrace the realities of the new services economy,” says Avangate. “With consumers now directly subscribing to trials, freemiums and pay-as-you-go models as they add to their wallet of paid services, companies need to respond by optimising monetisation at every touch point opportunity.”
Check out Avangate's Infographic here