Friday, January 01, 2016

THE MOBILE CHECKOUT REPORT: How retailers and tech giants are pushing consumers to do more of their spending on smartphones


mobile desktop time v dollarsBI Intelligence

As millennials and younger consumers become larger parts of the key spending demographic, mobile devices like smartphones and tablets are quickly becoming consumers' primary computing device. But for retailers, that poses a key challenge: Users are spending considerable time shopping on mobile, but making relatively few purchases. 

As a result, social networks, payment processors and card networks, and retailers themselves, are all developing solutions that make it easier for users who shop on mobile to begin to buy on mobile, and then channeling funds into products that incentivize users to do so.

By presenting options like on-site buy buttons, single-click checkout, financing services, and unified offline-to-online commerce experiences, various brands are beginning to convert desktop shoppers to mobile. But mobile wallets are beginning to take hold, and if they can successfully combine multiple features that ease barriers to mobile purchasing into one payment platform, they could hold the ticket to retailer success in increasing mobile purchases. 

In a new report from BI Intelligence, we predict how e-commerce will change and m-commerce will grow, explain why users are shopping, but not buying, on mobile devices, look at how stakeholders are looking to attract these users, and showing how products like mobile wallets could be game-changing in terms of mobile retail. 

Here are some key takeaways from the report: 

  • E-commerce and m-commerce are on the rise. In 2014, mobile comprised 11.6% of the US' $303 billion in e-commerce sales. BI Intelligence forecasts that by 2020, mobile will account for 45% of the $632 billion in total e-commerce sales. 
  • Users are spending the majority of their commerce-related browsing time in browsers rather than apps. In order to increase m-commerce conversion rates, retailers should be focused on browser-based solutions, which attract a wider audience than the loyal shoppers who download apps. 
  • If they move into the browser, mobile wallets like Apple Pay and Android Pay could drive an increase in m-commerce. That's because they provide a more streamlined experience to users than any of the other proposed solutions. However, it'll be hard for them to catch on fully if they remain focused solely on apps and in-store payments. 

In full, the report:

  • Forecasts the rising percentage of mobile commerce amidst an expanding e-commerce landscape.
  • Provides data showing why users are spending most of their time on mobile devices, but most of their dollars on PC.
  • Explains the barriers to mobile buying from a consumer-facing perspective.
  • Explores how stakeholders are trying to solve these problems and increase mobile purchasing.
  • Describes the role that mobile wallets like Apple Pay and Android Pay could play in increasing mobile purchasing in both the browser and the app.

Interested in getting the full report? Here are two ways to access it:

  1. Purchase & download the full report from our research store.» Purchase & Download 
  2. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. » Learn More Now



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Tuesday, December 29, 2015

The great bitcoin gold rush may already be over


A Bitcoin sign can be seen on display at a bar in central Sydney, Australia, September 29, 2015.  REUTERS/David Gray/FilesThomson Reuters

Bitcoin companies may have already hit their peak.

Venture fundraising in the bitcoin-related space has fallen sharply from the first quarter high, with big banks on Wall Street now looking to develop technology in-house rather than putting money to work in the space. 

"Unfortunately, many banks and institutions have focused on the creation of their own blockchains instead of innovating on the bitcoin blockchain," Michael Sonnenshein, director of sales and business development at Grayscale Investments, told Business Insider. 

One of the high-profile startups running into difficulty raising new capital is Blythe Masters' blockchain startup, according to a report in the New York Times. 

Digital Asset Holdings, a blockchain company providing distributed ledger and settlement services, has struggled to raise new funds, even after appointing Masters earlier this year. 

Digital Asset Holdings and Masters reportedly suffered after giving "better terms" to Masters' former employer, JPMorgan, than it is currently offering other banks like Citigroup and Goldman Sachs, according to The New York Times report.

One of the difficulties facing Digital Asset, the Times reports, is that the bitcoin and blockchain industry has been flooded with numerous startups directly competing with each other. Then there are projects like R3,which is looking to develop common standards and use cases for blockchain and now has 42 banks signed up. 

Digital Asset Holdings declined to comment when contacted by Business Insider. 

Since hitting a recent peak in the beginning of 2015, investing in the bitcoin and blockchain space has experienced a drop-off in investor interest, according to data maintained and published by CB Insights

cbinsightsThomson Reuters

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