More and more e-commerce companies will target shoppers via mobile in the coming years, as desktop sales begin to stagnate, a report by payments technology company Worldpay has said.
According to its 2018 Global Payments Report, mobile shopping in Singapore is expected to become the most popular online commerce channel in 2019 – that’s nearly half a decade ahead of the global average of 2023.
The payments technology company said in its report that mobile shopping will make up 52 per cent of all online sales in Singapre in 2019 – equivalent to a compound growth rate of 13 per cent per year. Meanwhile, desktop sales are predicted to remain stagnant over the next four years.
Phil Pomford, general manager for Asia Pacific, Global Enterprise eCommerce at Worldpay, said: “With a penchant for shopping and some of the highest rates of smartphone penetration in the world, it’s no surprise that Singapore is a frontrunner in the global transition to mobile commerce.”
He added merchants will increasingly address the demands of mobile shoppers by tailoring their businesses towards the growing channel.
The report also predicted that e-wallets will eventually make up 12.7 percent of e-commerce payments in Singapore by 2022, equal to a compound growth rate of 14 per cent per year, over the next four years.
E-wallets will also be increasingly used for payments in brick-and-mortar stores, with an expected 32 per cent yearly compound growth rate from now until 2022.
“Merchants can prepare for what’s coming next by ensuring that their payment systems are compatible with a range of cashless options like e-wallets, so consumers can enjoy a seamless, secure, quick shopping experience from desktop, to mobile, to brick-and-mortar shops,” Pomford said.
One way to ready a business for the mobile-commerce world is to develop branded apps for consumers. According to the report, 71 per cent of shoppers prefer apps over mobile browsers when shopping on their smartphone, and many say they won’t buy from a business that doesn’t have an app.
Other measures include the introduction of biometrics (i.e. fingerprint scanning and facial recognition via mobile devices) and the study of the most popular payment methods amongst a company’s target audience.