Nearly 9 in 10 Merchants Can Distinguish Mobile Commerce from Conventional eCommerce
A lot has changed in the five years since the very first Mobile Payments and Fraud Survey was published in 2013.
Back then, nearly 6 in 10 merchants were not able to detect whether a transaction originated on a mobile device. In other words, when it came to fighting fraud in mobile transactions, a majority of the eCommerce world was flying blind.
But the amazing growth of the mobile channel has changed all that. Today, the online world has its eyes wide open when it comes to mobile transactions. In this year’s Mobile Payments & Fraud: 2017 Report, nearly 9 out of 10 online businesses said they were able to detect when a transaction originated on a mobile device. And justifiably so:
- Five years ago, half of all online merchants said that mobile accounted for less than 5% of revenue. In this year’s report, half of all merchants said that mobile accounts for 20% or more of their revenue.
- Further, 4 out of 10 merchants predicted that in another two years, mobile would account for 40% or more of their revenue.
These figures and predictions are supported by other industry data.
According to comScore, for example, mobile sales accounted for 21% of total digital commerce dollars in the fourth quarter of 2016, its highest share ever. In addition, while conventional eCommerce grew at an impressive 13% rate, mobile commerce was on fire at a scorching 45% growth rate.
And as the market has changed, so have online businesses and their approach to mobile payments and fraud. The percentage of merchants offering a mobile app more than doubled from 21% in the 2013 edition to 44% in the 2017 report. And nearly half of all online businesses – 47% – said in the 2017 report that they now offered dedicated mobile websites to their customers.
Not surprisingly, mobile fraud has increased right along with mobile revenues. In fact, nearly 40% of online businesses in this year’s Mobile Payments & Fraud: 2017 Report said that mobile fraud had increased.
And when asked “Has mobile fraud kept up with mobile volume growth?” nearly half of merchants said mobile fraud had either increased at a faster rate (21.3%) or had grown proportionately (29.0%).
Yet even with online businesses reporting increased mobile fraud, the percentage of eCommerce operations that considered mobile fraud riskier than conventional eCommerce dropped for the third consecutive year. This year, only about 25% said mobile fraud was “Somewhat Riskier” or “Far Riskier” than conventional eCommerce, down considerably from the nearly 44% who said the same thing in 2015.
The reason for these somewhat contradictory responses might be due to the inability of online businesses to precisely quantify the impact of mobile fraud in relation to overall eCommerce activity. More than four in 10 merchants answered “Uncertain” when asked “Has mobile fraud kept up with mobile volume growth?” Further, it’s apparent that merchants are using multiple mobile antifraud tools, which may also contribute to confusion about mobile fraud activity:
- Three out of four merchants said they used multiple tools
- 44% of merchants used four or more tools for fighting mobile fraud
- More than 30% used six or more tools
- 16% used at least eight mobile risk management tools or services
Get more fascinating stats about the mobile channel. Since it was first published in June of this year, thousands of online businesses, merchants, and eCommerce operations have downloaded the Mobile Payments & Fraud: 2017 Report. With 60 charts and tables—a well as new data complemented by incisive analysis and commentary—it provides valuable insights into the state of mobile commerce and fraud.