Mobile Payments Index 2016 - Adyen 51256834-6951... · The Adyen Mobile Payments Index reveals huge

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  • Mobile Payments Index 2016Travel edition

  • Mobile The next opportunity for travelThe Adyen Mobile Payments Index reveals huge growth opportunities

    for travel merchants willing to invest in mobile payments.

    This report draws on Adyens data and real-life examples to provide

    practical advice for merchants looking to grow market share with

    mobile payments.

  • The global context

    In Q1 of 2016, 32% of global online payments on the Adyen

    payments platform were made on a mobile device.

    The iPhone and Android phones are increasing their share in

    tandem, while the tablet decline is driven by the iPad, which

    dropped to under 8% of mobile payment share for the first time,

    with Android tablets flat lining at just over 2% over the past two

    quarters. (See graph on following page).

    5%

    10%

    15%

    20%

    25%

    Q2 Q3 Q4 Q1

    Smartphone

    2015 2016

    Tablet

    Global split of mobile payments - Smartphone vs tablet

  • In terms of average transaction value, desktop and iPad are in the

    joint lead.

    Globalshare of mobile by device type

    iPhone continues to soar and Android grows steadily, while iPad

    continues to decline.

    0%

    5%

    10%

    15%

    Q2 Q3 Q4 Q1

    iPad

    2015 2016

    Android Tablet

    Windows Mobile

    Android Mobile

    iPhone

    Global device type usage per quarter

    0

    50

    100

    150

    44

    72

    95

    115 115

    Global average transaction value per device type, Q1 2016

    Android Mobile iPhone Android Tablet iPad Desktop

  • Travel Early movers are reaping rewards

    2016 is going to be a big year for mobile travel payments; globally

    mobile travel bookings are predicted to rise by 22%*.

    However, despite the growing influence of mobile in the travel

    industry, Adyens data reveals that the current share of mobile

    payments remains relatively low, at 15.5%.

    Mobile share for acommodation services is 17%, with an even split

    between device types. Airline share is 13%, which is driven by tablet.

    * Euromonitor November 2015, The State of Mobile Booking 2016 (Skift Report)0%

    5%

    10%

    15%

    % share of travel mobile payments, Q1 2016

    Smartphone Tablet Smartphone Tablet

    Accomodation Airlines

  • Mobile is already well integrated into the passenger experience. Travelers

    can check in and store boarding passes on their smartphones, check flight

    status and even chat with customer support. However, when it comes to

    actually buying a ticket on a mobile device, there is a lot of room to grow.

    While 13% might seem small compared to the global share of 32%, it is a

    high percentage when considering the typically high transaction value of an

    airline ticket. Further, as mobile increasingly becomes a central part of the

    passenger journey, this share is bound to grow.

    Airlines Reaching new heights with mobile payments

  • Airlinesshare of mobile by device typeGiven the typically higher transaction value of iOS users, it is no

    surprise that iPad is driving mobile payments for airlines.

    It also suggests that passengers still favor larger screens when

    making high value purchases.

    0%

    5%

    10%

    15%

    20%

    25%

    Global vs Airlines

    Smartphone Tablet Smartphone Tablet

    Global Airlines

    Airlines: Mobile usage split by device type

    0

    50

    100

    150

    200

    250

    300

    350

    184

    228 241 267

    295

    Average transaction value per device type, Q1 2016

    Android Mobile iPhone Android Tablet Desktop iPad

    0% 2% 4% 6% 8% 10%

    iPad

    iPhone

    Android Tablet

    Android Mobile

  • Industry leaders are beginning to make inroads: KLM successfully

    introduced payments to its customer support on social media,

    allowing passengers to complete a purchase from Twitter, thereby

    making the process extremely mobile friendly. Transavia has also

    embraced mobile optimization:

    To make the mobile experience easier for our

    customers we designed a scalable website, and were

    the first to launch Whatsapp as a service channel.

    Thanks to this investment, mobile now accounts for

    20% of our payments.

    Brit HaarmansSenior Product Manager

    Industry insight

  • When optimizing payments for mobile devices, it is important to

    consider the passenger on the move and enable a quick and easy

    payment flow, as demonstrated by SAS Airlines and Vueling:

    We have also optimized our mobile payment

    experience by storing preferred payment methods

    to enable instant booking. We also support e-wallets

    and payment methods that allow for an easy,

    one-click checkout.

    Charlotta FrohmBusiness Developer, Customer Payment Solutions

    Implementing mobile payment solutions like Apple

    Pay and Android Pay enables passengers to checkout

    with a single touch.

    Javier Alvarez SanchezIT Manager

    Industry insight

  • New developments will even enable passengers to make point of

    sale purchases on-board with their phones. This will enable airlines

    to centralize all transactions, from flight booking, to seat-upgrades

    to on-board purchases and view passenger payment history in

    one place.

    The next innovation we would like to see in mobile

    payments is in-app payment on-board. This would

    allow passengers to pay for food and drink on-board

    with their mobile, and receive a digital receipt. That

    would be a revolution if we enable it in an offline

    environment.

    Brit HaarmansSenior Product Manager

    Industry insight

  • There are many exciting opportunities for accommodation services. Guests

    can now browse, book, check-in and even order room service via their

    smartphones. Therefore the scope for building loyalty and up-selling is

    significant.

    Companies like HotelTonight and booking.com are already leading the

    way with a mobile first strategy. And, in order to keep up, 24%* of hotels

    state they are prioritizing mobile payments this year. Consequently, we can

    expect the share of mobile payments to increase significantly.

    Still, with a current share of 17%, there remains a huge opportunity for

    hotels and booking sites to differentiate themselves by providing a fully

    integrated mobile experience to guests.

    *hospitalitytechnology.edgl.com

    Accommodation The new generation is leading with mobile

  • Accommodationshare of mobile by device typeIn terms of transaction value, iPad is in the lead, followed closely by

    desktop. This suggests that there is still room for further optimizing

    the experience for small screens.

    Although smartphone dominates globally, when it comes to booking

    accommodation, tablet retains its market share. This is likely to

    change as the payment flow for smaller screens improves.

    0%

    5%

    10%

    15%

    20%

    25%

    Global vs Accommodation

    Smartphone Tablet Smartphone Tablet

    Global Accomodation

    0

    50

    100

    150

    200

    250

    300

    350

    200

    254 262

    329 331

    Average transaction value per device type, Q1 2016

    Android Mobile iPhone Android Tablet Desktop iPad

    0% 2% 4% 6% 8%

    iPad

    iPhone

    Android Mobile

    Android Tablet

    Accommodation: Mobile usage split by device type

  • Industry insightWhen designing the mobile experience, it is important to

    accommodate the needs of the traveler on the move.

    HotelTonight recommends the following considerations:

    Simplicity instead of showing you every hotel, we show you the top rated hotels with the very best deals. This saves

    time, and is more accommodating to smaller screen sizes.

    Speed mobile bookers are on the go, and usually in the midst of doing something else. Our motto is to

    get you out of the app and on with the rest of your

    night as soon as possible. We obsess over tap counts,

    making it possible to book a hotel room in three taps

    and a swipe.

    Contextual Awareness mobile devices are inherently personal and its important for the content of the apps

    to react to the needs of the consumer in real time. The

    hotel deals we present to a booker vary depending

    on where that booker is located and other factors.

    This personalization increases conversion while

    simultaneously improving our customer satisfaction.

    Sam ShankCEO

  • Mobile contributes to a wider omnichannel proposition which puts

    the customer experience front and centre.

    Recognizing guests across sales channels eliminates the need for

    them to re-enter payment details when making payments from a

    different channel or location.

    With Adyen we can serve a repeat customer who

    comes to our hotel every week, and ask for their

    card details only once. So we provide a flawless

    experience.

    Lennert de JongDirector of Distribution and Business Development

    Industry insight

  • About the Adyen Mobile Payments IndexSince June 2013, the Adyen Mobile Payment Index has tracked

    the rapid evolution of mobile as a payment channel, providing

    insight into mobile payment trends for different devices and

    market sectors, across selected geographies and payment

    methods. The Mobile Payments Index is b