Consumers will spend £2.5bn shopping through mobile in 2016, claims a report by PayPal.
The five-year forecast commissioned by PayPal predicted that the market will grow by an average of 42% each year, meaning that by 2016, it will be worth around £2.5bn, while it was also discovered that mobile sales represent 1.5% (£438m) of current overall online retail sales.
Each mobile shopper currently spends an average £100 per year in 2011, which is expected to grow to £180 a year by 2018.
Ticketing retail is expected to grow by 46.6% each year, while the deals and voucher market will see online spend grow by 44.4%. Fashion is expected to grow by 42.9%, followed by Health & Grocery (42.1%), Media (40.4%) and Computing and Appliances (39.6%).
Cameron McLean, general manager, Merchant Services PayPal UK, commented: “Mobile shopping is a growth market for UK retailers. The convenience of a connected device that can be used almost anywhere will lure increasing numbers of UK consumers into mobile buying. Our report shows that this consumer pull will be matched by a retailer push, with mobile-savvy retailers offering slick, sophisticated mobile experiences that rapidly become a key part of an overall multi-channel strategy.
“PayPal was created to let people make mobile payments. Over a decade later, mobile has come of age, and we expect to handle over $3.5 billion in mobile payments globally in 2011. The act of paying for something should be as seamless as the decision to buy it, and that’s where we can help retailers grow their mobile business. Over a million PayPal UK customers have sent a payment on their mobile.”