If you are at any level involved in the digital transformation of retail, run a Website offering goods or services, or are in any way involved in any form of consumer-facing business you have no choice but to support Apple’s mobile platforms.
The evidence of this is plentiful. Fresh today we learn that iPhones and iPads now account for over 18 percent of all online transactions globally. When you combine both iPhones and iPads, these devices constitute 64.1 percent of browser based online transactions.
These figures come from Adyen’s latest Mobile Payments Index (MPI), which tracks browser-based mobile payment data. It confirms that smartphones now dominate mobile spending with iPhones accounting for 35.6 percent of all browser-based transactions made using mobile devices.
“The continued rise in popularity of the iPhone for making online purchases, coupled with the higher Average Transaction Value 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.
iPhones are used for 10.2 percent of all global online transactions, up from 8.6 percent at the turn of the year. iPads are still in the frame, but they now account for just 28.5 percent of all browser-based mobile transactions, down from almost 50 percent in March 2013. Android smartphones continue to grow their share of mobile transaction volume, increasing from 27.2 percent in the first quarter of 2015, to 28.3 percent.
The data also confirms the truism that iOS users spend more per transaction than those on other platforms. It found that shoppers using an iPad spend an average of $115 per transaction, $18 higher than those using Android tablets. iPhone users also spent $82 on average in comparison to Android’s slightly more modest $75.
There are implications for Apple Pay. “The big news dominating payments in the UK this quarter is the launch of Apple Pay,” said Myles Dawson, UK Country Manager, Adyen. “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.”
Also read: Apple Pay A 5-step beginner’s guide
This is a particularly big deal in the UK as mobile-based online shopping is already hugely popular there. In Q2 2015, 44.8 percent of online payments in the UK were made using a mobile device, up almost 2 percentage points from the beginning of the year. On current trends the UK may surpass the 50 percent mark for mobile transactions midway through 2016.
Interest in Apple Pay will also boost adoption of iOS 8 and (coming soon) iOS 9. Driven by interest in Apple Music, Mixpanel data shows that iOS 8.4 is now installed on over 40 percent of all actively used iOS devices and users continue to switch to the new OS.
iPads are physical
A final point of interest buried within the Adaya report is the difference in spending habits. When it comes to physical items, mobile shoppers prefer to purchase things using tablets, but when purchasing digital goods, consumers are happy to use smartphones.
In brief: 19 percent of online transactions for physical goods are on a tablet, compared to 12 percent on a smartphone, but only 8 percent of digital goods were bought on a tablet this quarter.
So, what’s the take away here? Realistically it means that any ecommerce professional has to focus on Apple’s platforms as first priority, because they will generate more business this way.
It will be interesting to see how this impacts mobile ad spending between Apple and Android platforms in future, particularly as the ease of installation and wide compatibility of iOS 9 destroys any hint of fragmentation on Apple’s mobile platforms.
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