Two in Three Merchants Get At Least 10% of Their Revenue from Mobile
Of the 800 online merchants that responded to the Mobile Payments & Fraud: 2017 Report, 64% said that currently they get at least 10% of their revenue from the mobile channel. Two years from now, 80% of those merchants project that mobile will account for at least 10% of their sales. Further, in two years, mobile will make up at least half of all sales for more than 2.5x as many online businesses as it does today (26% of merchants in two years vs. 10% today).
These findings align with other industry studies that project nearly half of US eCommerce transactions will take place on mobile by the year 2020.
Yet despite these rosy projections, there are issues that could hinder mobile success. For example, a significant percentage of mobile buyers currently express disappointment in mobile page load times (47%) and site/app navigation (31%). And there are other statistics that point to the need for additional improvements in the mobile commerce experience for consumers:
- Nearly 1 in 3 mobile shoppers abandon a transaction if experience is not optimized for mobile.
- 57% of users say they won’t recommend the business with a bad mobile site.
- 41% of shoppers have gone to a competitor’s site after a bad mobile experience.
As merchants work to optimize their mobile commerce experience, one area that might get overlooked is fraud prevention. Implementing additional fraud prevention procedures specifically for mobile transactions could slow down checkout and further suppress already low mobile conversion rates.
Perhaps that’s one reason why a growing number of online businesses are moving away from standalone/ad hoc tools for mobile fraud prevention and adopting all-in-one fraud prevention platforms that incorporate mobile.
In the first Mobile Payments & Fraud Report published five years ago, individual tools like AVS, Secure Mobile Payment Methods, and ID Authentication were more popular than a Complete Fraud Platform. This year, however, Complete Fraud Platform is the most popular option that merchants named to combat mobile fraud, with nearly 2 in 3 online businesses saying they already have or will have a Complete Fraud Platform in the next two years.
However, it’s important to evaluate whether mobile fraud prevention is a fully integrated capability in a “complete” prevention platform, or an “added-on” function utilizing third-party or ad hoc technology. Why? Two reasons:
- Slow checkout speed. In addition to the obstacles to mobile conversion rates discussed earlier, one of the biggest hurdles to mobile commerce is slow check out.
Kount Complete is an enterprise-class fraud prevention solution that fully integrates mobile. As a result, the average time to approve, decline or escalate a transaction is a mere 300 milliseconds (that’s as fast as a human eyeblink). This type of blazing speed is absolutely essential to maintain and enhance mobile commerce conversion rates.
- Operational complexity. With mobile commerce transactions making up a greater percentage of orders, online businesses can’t waste time and money maintaining separate systems for desktop and mobile transactions.
- 45% of online businesses in the Mobile Payments & Fraud: 2017 Report said the cost of implementing new technology was an obstacle to mobile adoption.
- 58% of large mobile commerce merchants said it costs too much to control fraud in the 2016 LexisNexis “True Cost of Fraud Study".
Kount Complete is an all-in-one fraud prevention platform that delivers the best of both worlds: it integrates processing and reporting for an efficient, streamlined process. At the same time, It enables specific, mobile-only rules that lets eCommerce operations dial in the optimal mobile rules and screening to suit their particular business.
Download the Mobile Payments & Fraud: 2017 Report and get insights into the latest trends, continuing patterns, and changing behaviors related to mobile commerce.