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No Surprise that Big Online Merchants Lead in mCommerce Capabilities

posted on: Mon Oct 02 2017

This year, 78% of merchants said they actively supported the mobile channel in the Mobile Payments & Fraud: 2017 Report, an increase of 44% compared to the 54% of merchants that said so five years ago in 2013. And unsurprisingly, big online merchants this year were more likely to say that they actively supported the mobile channel.

  • 92% actively support the mobile channel - $250-$500 million annual revenue
  • 83% actively support the mobile channel - greater than $500 million annual revenue

Online ShoppingOverall, support for the mobile channel was fairly robust across all merchant segments. In 21 out of the 27 merchant segments that participated in the Mobile Payments & Fraud: 2017 Report, at least 75% of merchants actively supported the mobile channel.

Here are the top 10 market segments that said they were actively supporting the mobile channel:

Rank     Percentage Actively Supporting   Market Segment
1 100% Dating/Social
2 89% Travel Services
3 89% Other
4 88% Alcohol/Tobacco
5 88% Food/Drug
6 88% Gaming
7 87% Jewelry
8 86% Health & Beauty
9 86% Ticketing
10 83%  Apparel/Accessories 

 

As for the bottom 3 market segments NOT as likely to support mobile? No big surprises.

 Rank    Percentage Actively Supporting   Market Segment
25 67% Professional Services
26 60% Money Movement/Transfer
27 47% Other Services

 

Continuing the trend, big online merchants this year were also more likely to say that the mobile channel was “Very Important” or “Somewhat Important” to revenue growth:

Mobile Strategy

And when it comes to fighting fraud in the mobile channel, big online merchants were more likely to use a “Complete Fraud Platform” to combat mobile fraud compared to smaller online merchants.

Complete Fraud Platform
Bigger Online Merchants Smaller Online Merchants
 $250-$500 million   > $500 million   < $5 million    $5-$10 million 
77.3% 50.7% 26.3% 22.2%

 

Let’s look more deeply at market segments. There was close—but not absolute—alignment between the market segments currently supporting the mobile channel and those that said mobile was important to revenue growth, indicating that some market segments are catching up to the sales potential the mobile channel represents.

Rank   Total % of "Very Important" and "Somewhat Important" "Very Important"  "Somewhat Important" Market Segment
1 100% 88.9% 11.1% Alcohol/Tobacco
2 100% 84.2% 15.8% Flowers/Gifts
3 100% 75% 25% Dating/Social
4 100% 71.9% 28.1% Food/Drug
5 100% 66.7% 33.3% Gaming
6 100% 53.3% 46.7% Automobiles/Auto Parts
7 96.9% 75.0% 25.0% Jewelry
8 96.2% 73.1% 23.1% Housewares/Home Furnishings
9 96.0% 74.0% 26.0% Health/Beauty
10 95.2% 68.7% 26.5% Apparel/Accessories

 

Somewhat surprisingly, only 3 of the top 10 merchants that said they were actively supporting the mobile channel—i.e., merchants with the most mobile experience—said that mobile transactions were “Far Riskier” or “Somewhat Riskier.” However, those NOT in the top 10 but nonetheless were wary of mobile fraud may be so because of higher product values (e.g., Jewelry and Automobiles/Auto Parts) or higher transactional risks (e.g., Financial Services and Digital Goods).

Rank Total % of "Far Riskier" and "Somewhat Riskier" "Far Riskier" "Somewhat Riskier" Market Segment
1 62.5% 37.5% 25.0% Other
2 53.9% 38.5% 15.4% Automobile/Auto Parts
3 49.0% 35.7% 14.3% Gaming
4 41.2% 35.3% 5.9% Flowers/Gifts
5 35.7% 32.1% 3.6% Jewelry
6 35.3% 29.4% 5.9% Games
7 35.0% 35.0% 0.0% Office Supplies
8 33.5% 27.8% 5.6% Toys/Hobbies
9 33.3% 13.3% 20.0% Digital Goods
10 33.3% 0.0% 33.3% Financial Services

 

Want to know more about what your fellow online businesses are saying about mobile channel revenue opportunities and investments, where they see mobile fraud risks coming from, and what tools they’re using to fight mobile fraud? Download the Mobile Payments & Fraud: 2017 Report, which contains data insights from over 800 merchants—sliced and diced by market segments—as well as more than 60 charts and tables.

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