British mobile phone users will spend an estimated £27.02 billion on online shopping from their mobile devices this year.
Mobile transactions will account for 40% of all online retail transactions in the UK this year.
Last year, a study conducted by MasterCard revealed that three in every four Brits enjoy online shopping and have never had a negative experience and that 82% of all Brits are either shopping online or using e-commerce services. A new research from VoucherCodes.co.uk and the Centre for Retail Research now claims that out of £67.38 billion in online purchases, around £27.02 billion will be conducted on mobile devices in the UK this year.
The research notes that total online sales in the UK are set to rise from £60.43 billion in 2016 to £67.38 billion in 2017 and £73.58 billion in 2018. At the same time, online transactions using mobile devices will rise from £21.51 billion in 2016 to £27.02 billion in 2017. The number of mobile shoppers is also set to rise from 23 million in 2016 to 28 million in 2017.
The research also found that while mobile devices will be used for 27.9% of online retail sales in Europe, their share of online purchases in the UK will be much higher at 40.1%. This is because of the advent of contactless payment systems like Apple Pay and Android Pay which ensure that payments are quick, secure and easy to perform.
“These latest figures confirm the increasing significance of mobile to both retailers and consumers, which is now the main driver for the continued growth of the online retail sector. This year, 40 pence of every pound spent online will come from a mobile transaction, a reality that retailers simply cannot ignore,” said Claire Davenport, Managing Director at VoucherCodes.co.uk.
“To remain competitive and respond to customer demands, it is more vital than ever for UK retailers to evolve their mobile offering. This can be done by providing an optimised and mobile-friendly online shopping experience, developing truly seamless customer experiences across all channels, and harnessing the power of targeted mobile marketing to drive footfall. As a nation, we are embracing mobile spending far more than our European counterparts – proving that the UK’s consumers and retailers are very open to digital innovation in retail,” she added.
While mobile devices are used a lot more in the UK to make online payments than in the rest of Europe, the per head value of transactions in the UK is also much higher compared to that of Europe. In 2017, an average UK resident will spend £1,428.39 shopping online, which is 38% higher than the European average of £1003.54. Also, while only 52% of Europeans do online shopping regularly, the percentage of such people in the UK is 72%.