Get to know your mobile shoppers
The PayPal mCommerce Index is an annual barometer on the state of mobile commerce in Australia. It’s a way for us to share insights and help businesses get ahead of the trend.
They love their mobiles
Almost 2 in 5 Australians (37%) prefer to use a mobile device, rather than a computer, to shop and pay online. For those in the 18-34 age bracket, that number jumps up to 46% (41% for those aged 35-49, and 26% for 50+)While the preferences for mobile devices has remained constant over the past few years, consumers are starting to prefer their mobiles over their tablets with smartphone preference rising to 27% (vs 18% in 2016) and tablet dropping down to 9% (vs 14% in 2016). And smartwatches are starting to edge in, being reported as preferred mobile device for the first time in 2018 by 1% of Australian consumers.
Supporting this, at PayPal we’ve seen a 39% increase year-on-year in mobile transactions. That’s a huge shift.
Their expectations are growing
Consumers have generally been patient with businesses as they move to mobile-optimised websites and apps. However, they’re now expecting businesses to focus on their mobile experiences to build delightful, streamlined experiences.47% of consumers report they’re annoyed when sites don’t work on their mobiles, up from 35% in 2017. They’re also more likely to abandon purchases and stop doing business with a company after a bad mobile payment or purchase experience.
They think differently to businesses
There’s a big disconnect between consumer expectations and business understanding of mobile shoppers’ pain points. While 14% of businesses believe payment problems are a barrier for consumer purchase on mobile, only 11% of consumers agree. Consumers instead are expecting faster page load times, easier navigation and fewer fields at checkout.
They like apps
Apps have become a significant channel for mobile transactions with 68% of Australians paying via apps (vs 65% in 2017) and 29% doing so at least weekly (vs 27% in 2017). Food and drink apps have made the biggest movement, taking the second-highest place in consumer app purchasing by category at 31% (vs 24% in 2017). Other key categories for mobile app purchases are bill payments (46% steady), tickets (29% vs 27% in 2017), clothing and accessories (27% vs 21% in 2017) and travel (24% vs 19% in 2017).While 19% of Australian businesses now have an app (vs 15% in 2017) and 44% project they will have one within the next 3 years, it’s worthwhile considering if an app is right for your business before making a big investment.
They’re social creatures
Australian consumer adoption of social commerce continues to grow with 19% purchasing via social media (vs 11% in 2017). The biggest jump in consumer social commerce adoption is among the 35-49 age group with 24% now making social media purchases (vs 11% in 2017).
While social media is a key tool for product discovery, as a purchasing platform it’s still in its infancy. Australians are using social media to search for specific brands and products, and to window shop for inspiration. 20% say they’re likely to explore Facebook when looking for purchases online and 22% said they’ve purchased items through an online store after seeing them on social media.
That said, 36% of Australian consumers don’t trust the process of buying via social media and 38% are worried about the safety of their financial information when doing so. It’s worthwhile exploring how your customers feel about social before relying on it as a sales channel for your business.
While social media is a key tool for product discovery, as a purchasing platform it’s still in its infancy. Australians are using social media to search for specific brands and products, and to window shop for inspiration. 20% say they’re likely to explore Facebook when looking for purchases online and 22% said they’ve purchased items through an online store after seeing them on social media.
That said, 36% of Australian consumers don’t trust the process of buying via social media and 38% are worried about the safety of their financial information when doing so. It’s worthwhile exploring how your customers feel about social before relying on it as a sales channel for your business.
They love a good sale
The PayPal mCommerce Index: Trends Report 2019 delved into how Australians approach sales. We found that 57% of Australians prefer to shop the sales online rather than in-store, and there’s a growing preference to shop sales on mobile, particularly for millennials and Gen Z.
They want to see more innovation
Visual search – where you upload a picture of a product, either from real life or found online, and find similar items for purchase – is in demand for Australian consumers. 1 in 5 Australians have used visual search to find information (14%) or make a purchase (6%), and a further 2 in 5 (39%) want to. 40% believe they’d be more likely to make a purchase if they could use visual search.
Shoppable video, which brings clickable links directly into video on your own site or other channels (like YouTube), also holds appeal for consumers. 30% of Australians have seen an item in a film or video and tried to, or wanted to, find out more about it, and 24% said they’d be more likely to make a purchase online if they could use shoppable video.
As the PayPal mCommerce Index shows, mobile and tech innovation are rapidly becoming consumer preferences for online purchases here in Australia. It’s important for all businesses to ensure their websites are fully mobile-optimised, and to carefully consider their next tech investments to keep up with the trends.
Find out more about the state of mobile commerce in the PayPal mCommerce Index.