Jumio report highlights payment friction and poor shopping experience
Jumio, a leading payment processing firm, has released a report that aims to shed some light on the problems that exist in the mobile commerce field. The mobile space has been receiving a great deal of positive attention recently, largely due to the high performance of mobile commerce during the 2013 holiday season. Mobile payments are not all glamour and without fault, however, as Jumio’s report shows. The report highlights the friction that exists in the mobile payments space and how poor experiences are keeping consumers from shopping with their mobile devices.
Retailers lose out on billions due to problems with mobile shopping platforms
According to the report, retailers lost more than $15.9 billion in potential revenue due to problems associated with mobile commerce. The report shows that payment friction played a significant role in lost sales. The report shows that approximately 47% of mobile shoppers abandoned their purchases due to payment friction. Moreover, poor mobile shopping experiences left consumers with a bad impression of mobile commerce in general, which may translate into future avoidance of mobile shopping when it comes to some retailers.
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Retailers need to take mobile platforms more seriously if they want to find success in the future
The retail industry, as a whole, celebrated its most successful holiday shopping season in the wake of 2013, with holiday sales coming in at $601.8 billion. Some $95.7 billion in online sales were recorded during the holiday season, with 16.6% of these sales being made from a mobile device. While retailers may have considered the holiday season a success, they may be setting themselves up for future failures if they do not address issues concerning consumer shopping experience and payment friction.
Poorly designed mobile commerce platforms continue to cause problems for consumers
While mobile commerce has become more than a passing fancy for businesses and consumers alike, there are still many challenges that retailers must overcome if they want to find success in the mobile space. Many retailers boast of their own mobile commerce platforms, but these platforms have been hastily produced and many consumers have encountered serious problems when using these platforms to shop and purchase products from their mobile devices.