How Apple Pay Revolutionizes Online Conversions
The launch of Apple Pay last month is a significant development in mobile payments, which is set to dramatically change the way that consumers shop in-store.
While much of the attention has been focused on the use of phones and watches in-store as payment devices, Apple Pay will change online shopping as well and have a major impact on which devices customers choose to use. For many Apple users, it will be easier and faster to purchase on their mobile devices than on a desktop or tablet. For these users, "Mobile First" reflects that their phone is their primary conversion device, replacing their physical wallet.
Consumers spend more time on their mobile phones than on any other device. We check our smartphones on average 150 times per day, and experience distress when separated from our phones for more than a few minutes. We check our phones in our spare minutes — waiting in line at Starbucks, in bed, on the train, waiting for meetings to start, during the boring bits of meetings and TV, etc. More than 60 percent of email is now opened first on a mobile device.
However, phones still aren't used primarily as a shopping device because of the challenges presented by the online checkout process. SeeWhy research shows that 97 percent of shoppers that have added to a shopping cart will abandon the site when reaching checkout on a smartphone.
There are three key reasons why:
1. Small screens, big fingers: Entering data on a small screen is fraught with difficulty and easily susceptible to errors. Consumers have learned to bail as soon as they see "Register," "Guest Checkout" and "Login" on a smartphone.
2. Not enough hands: If you use one hand to hold your phone and the other to type, how do you get your credit card out of your wallet? You have to put the phone down, extract the card, then try and hold both card and phone in one hand. It's possible, but hardly convenient. A small percentage of consumers have solved the problem by learning their credit card details by heart, but it's unlikely that we can train all consumers to do so.