Canadian Mobile Commerce Predicted to Grow by 142% in 2016

by Istvan Fekete on February 19, 2015

Canadian retailers now have even more reasons to adopt mobile payment solutions, a recent study from PayPal and Ipsos has found. From 2013 to 2016, the compound annual growth rate for mobile commerce in Canada is projected to be 34% vs.14% for overall e-commerce, including mobile commerce. This growth presents opportunities for Canadian retailers, as spending on mobile commerce had already reached CAD $3.45 billion in 2013, a number which is predicted to grow by 142% next year.

“We are at the dawn of a mobile-first era,” said Alexander Peh, head of mobile and market development at PayPal Canada. “At PayPal, we’ve seen our mobile growth rise from less than one per cent of our payment volume in 2010 to more than 20 per cent in 2014.”

A fifth of Canadians surveyed made a purchase from their smartphone, while tablet users accounted for only 15%. As you may have already guessed, the millennials are behind the spike in mobile commerce, as more than half of the shoppers who ultimately made a purchase with their smartphone were aged between 18 and 34. Also, it is work noting here that the same group accounts for 31% of total online shoppers.

About 17% of shoppers buy from their smartphone more than once a week. This compares to millennials, who are the most active mobile shoppers, with 30% making purchases at least once a week.

The era of mobile browsers is over: Smartphone shoppers prefer apps to browsers, with 55% of smartphone shoppers finalizing a purchase using an app, and 52% via a mobile Web browser.

The study also sheds light on the possible reasons that hold people back from switching to mobile. The main reason seems to be that people do not see any distinct advantage in shopping on mobile devices versus shopping on their computer.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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