Who doesn’t have a smartphone these days? I’ll wait (patiently tapping my fingers on the desk). As of January 2019, Statista reported that there were 3.986 billion unique active mobile users. With a growing population, that number is only expected to increase along with the number of mobile phone users, as many kids will be of the age to own phone and will undoubtedly use it to text, to play games and of course, to purchase.
Mobile Spending on the Rise
In 2017, the mobile payment technology market had a value of about $123.5 billion, with an expectation that the value will increase 60% to $3,371.6 billion by 2024 (Source: Globenewswire). Analysts see this steady increase due to “the simplicity and swiftness provided to consumers by means of consistent technology advancement.” Researchers at the University of Illinois at Urbana-Champaign have found that the emergence of more and more mobile wallet technologies “encourage people to spend more money.”
While China has seen the most growth in the mobile wallet industry, the U.S. is seeing a significant uptick in usage in the technology. At least 50% of American cell phone users were discovered to be using some form of mobile wallet technology, with an expectation that the percentage will increase to 90% by 2020, with more consumers taking advantage of technologies available on both Apple and Android as noted by Zion Market Research.
Researchers have found that consumers spend at least 2.4% more when a store offers mobile payments. In addition, the “total number of retail transactions also went up by more than 23%, largely because people were buying low-cost items more frequently.”2 Surprisingly, it was discovered that most consumers stopped using physical credit cards once they’ve begun using the technology. University of Illinois professor Yuqian Xu says that “it’s the future of how consumers will pay for small-ticket items, which means you will see fewer and fewer people carrying actual, physical credit cards in the coming years. They’ll just carry their phones, so they may not even need their wallet. It’s more convenient and it merges payment channels.” Think about it–it’s extremely easy to sit in bed and buy a product on a mobile phone rather than having to physically get up, get dressed, and drive down to a store to purchase an item. Moreover, the Internet is global in scope, and it’s always on, meaning that there are no store hours—it’s always open. This is important for businesses that have a mobile-friendly site and/or app, as having the site up and running 24 hours a day will allow for purchases any time, day or night. This makes it easier to not miss out on any sales, and those sales generally are more up to date on the app, which allows consumers to be up to date on the best offers (Source: Techjury).
Mobile is also becoming a fierce competitor to television. This year, researchers at eMarketer have found that mobile users spend at least 3 hours and 43 minutes on their phones versus spending 3 hours and 35 minutes watching television. This means that “shakes out to Americans spending nine less minutes tuning into shows, sporting events and movies on the tube, and eight more minutes streaming them on Netflix, Hulu, and Amazon or catching clips on Twitter and YouTube, compared to last year.”1
Don’t Have a Mobile Site Yet? You Might Be in Trouble!
Blue Corona reports that at least 80% of customers will “delete your email if it is not optimized for mobile.” With email being a constant form of marketing that isn’t expected to go away soon, it is important that not only does your website need to be designed for mobile, but emails need to have the same treatment. Google says that “mobile users are very goal-oriented. They expect to be able to get what they need, immediately, and on their own terms.” Therefore, if your site doesn’t cater to the mobile crowd, not only will Google NOT acknowledge it, but you’ll lose out on many users that could have ultimately become customers.
While the usage of mobile in daily life is expected to increase, eMarketer predicts that there will be a plateau in 2020, as users will begin to get concerned with the time they spend on mobile. Apple and Google have already added features to phones that will allow users to monitor their screen time.
1He, A. (2019, June 04). US Adults Are Spending More Time on Mobile Than They Do Watching TV. Retrieved from https://www.emarketer.com/content/average-us-time-spent-with-mobile-in-2019-has-increased
2Passy, Jacob. (2019, March 2019). All the Ways Mobile Wallets Can Do Serious Damage to Your Finances. Retrieved from www.marketwatch.com/story/this-is-what-a-mobile-wallet-could-to-your-holiday-spending-its-not-pretty-2018-12-03
Note: If you’re looking for an agency that will design your website to be responsive and cutting-edge, contact us.