Mobile commerce is on track to overtake desktop sales globally in 2023, with Hong Kong leading the way. Next year will see m-commerce take up the mantle as Hong Kong’s most popular online shopping channel, nearly half a decade ahead of the global average, according to new research from leading payments technology company Worldpay, Inc. (NYSE: WP; LSE: WPY).
The research found that APAC markets such as Hong Kong are frontrunners in the global transition to mobile shopping. Mobile is now the fastest growing channel in Hong Kong, predicted to see a compound annual growth rate (CAGR) of 14 percent over the next four years. In comparison, desktop shopping in Hong Kong will grow at just 2 percent per annum over the same period.
M-commerce is set to become Hong Kong’s most popular online shopping channel in 2019, at which pointmobile is projected to account for over 50 percent of all online sales. This places Hong Kong ahead of the curve, with global m-commerce on track to overtake desktop sales in 2023.
Phil Pomford, general manager for Asia Pacific, Global Enterprise eCommerce at Worldpay, said: “Hong Kong is renowned as a brick-and-mortar shopping paradise, but our new research indicates that online and mobile retail is the future. Shoppers in Hong Kong are racing ahead of their global peers to adopt m-commerce, and with some of the highest smartphone penetration rates in the world, it’s no surprise that consumers in Hong Kong are eager for more opportunities to enjoy the shopping experiences they love via innovative new channels.”
Hong Kong is also ahead of the pack in adopting alternative, cashless payments such as e-wallets. Rising at a rate of 17 percent CAGR, e-wallets are forecast to make up 36.6 percent of Hong Kong’s e-commerce market by 2022. Hong Kong’s shoppers are also using e-wallets to pay which are now the fastest growing in-store payment method in Hong Kong, set to rise at a 32 percent CAGR over the next four years.
In total, the e-commerce market in Hong Kong is poised to increase by 38 percent between now and 2022, ultimately reaching US$22.3bn in the next four years.
Pomford added, “While there’s no one-size-fits-all approach, Hong Kong is evidencing a trend we’ve seen across Asia – the rise of m-commerce and alterative payments like e-wallets, both in-store and online. In this context, it’s more important than ever for merchants to tailor their mix of payment methods to match the preferences of local shoppers. Most important is providing a consistent overall retail experience that matches brand attributes, so that consumers can enjoy seamless and secure shopping and payments from desktop, to mobile, to bricks-and-mortar.”
Worldpay has published guidelines for merchants to help capitalise on emerging m-commerce and cashless opportunities:
1) Consider developing a branded app. We know that 71 percent of shoppers prefer apps over mobile browsers when shopping on their smartphone, and many say they won’t buy from a business that doesn’t have an app. It’s no longer enough to just have a mobile-optimized website – if you’re not prioritizing a transactional app for your brand, you’re not putting your best foot forward.
2) Make it easy and use biometrics to speed up the journey. Shoppers are becoming increasingly familiar with the concept of fingerprint scanning and facial recognition via mobile devices, so they do not shy away from using these methods as a form of authentication. Biometrics place payments at the back of the user’s mind, giving them a faster and friction-free experience, making the payment seem ‘invisible’.
3) Identify the most popular payment methods in each territory in which you operate. There are huge differences in payment preferences across the world and within Asia, and alternative payment methods like e-wallets are gaining share over traditional credit and debit cards. There’s no one-size-fits-all in any region so you’ll need to understand the best options for your company.
The Global Payments Report was compiled using a mixture of proprietary data and Worldpay experts, supported by third party vendors such as GlobalData, Euromonitor, eMarketer and yStats. This year, for the first time, the report covers not only e-commerce trends but also in-store transactions. To learn more about these key insights and trends in global payments,
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