LONDON, UNITED KINGDOM--(Marketwired - Oct 22, 2014) - With the festive retail season shortly about to take off, Jumio, Inc. today released its mobile commerce analysis that finds that although UK retailers are set to enjoy the most successful mobile holiday shopping season to date, they will miss out on nearly £2.5bn in sales due to the prevalence of outdated mobile checkout experiences.
This festive season, predictions are that UK retailers will take nearly £5 billion1 in mcommerce sales, driven by a 64.8%2 YoY increase of transactions from mobile devices. But according to a recent Harris poll, 47 percent of shoppers abandon purchases3 on mobile devices because of checkout friction where sub-optimal payment and checkout experiences cause consumers to drop out of the transaction. Furthermore, the majority of shoppers (57 percent) do not attempt the transaction later4 on a desktop computer, meaning up to £2.5 billion in the form of lost sales stands to be left on the table by UK retailers this peak Christmas trading season.
"We know that consumers abandon mobile shopping carts for a variety of reasons, from slow network speeds to high shipping costs, but the most significant among them is entirely under a retailer's control -- simplifying checkout processes," said Marc Barach, Chief Marketing Officer, Jumio. "While mobile apps have transformed the ecommerce shopping experience, checkout processes have not kept pace with mobile technology. Retailers need to implement solutions that seamlessly usher shoppers through the checkout experience to stem the tide of shopping cart abandonment and billions lost in potential sales, both during Christmas peak trading and throughout the year."
In addition to revenue lost due to payment friction at the time of checkout, retailers risk losing money on future purchases as well. 63 percent of consumers are less likely to buy from the same company via other purchase channels after abandoning a mobile transaction due to a poor experience, according to the recent Harris poll. Nearly half of all consumers surveyed (47 percent) said they failed to complete a purchase because the checkout process took too long. Other reasons shoppers fail to complete a mobile transaction include:
- 41 percent said the checkout process was too difficult on their device
- 23 percent said they failed to complete their purchase because it would not go through
Jumio today also introduced BAM Checkout (www.jumio.com/press-releases/) a comprehensive mobile checkout offering to increase transactions while reducing fraud. For more information, please visit: www.jumio.com/BAM
About Jumio
Jumio is a next-generation payments and ID software-as-a-service company that utilises proprietary computer vision technology to reduce mobile/online payment and ID friction and fraud, while increasing revenue and customer satisfaction. The company's mission is to provide its clients with intuitive, consumer-facing technologies that make it possible to conduct a wide range of mobile transactions without a single keystroke. Half of the top 10 consumer internet companies, along with hundreds of other retailers, financial institutions, marketplaces, gaming companies and more have adopted Jumio products and services to help speed through customer sign-up and checkout processes, and drive higher completion rates and satisfaction. Jumio has received numerous innovation awards from leading industry associations and is listed on The Sharepost 100 as one of the world's most innovative and compelling private companies.
Jumio's products that improve customers' mobile experiences include BAM Checkout™, which enables customers to complete a mobile checkout in seconds by scanning their payment card and driving license, resulting in decreased abandonment, increased revenue and reduced fraud for merchants. Netverify® for web and mobile supports real-time ID verification of ID documents issued by over 120 countries to help clients meet a variety of Know-Your-Customer requirements.
Jumio was founded in 2010 by CEO Daniel Mattes and is backed by top tier investors including Andreessen Horowitz, Citi Ventures and Facebook Co-Founder, Eduardo Saverin. Headquartered in Palo Alto, Jumio operates globally with offices in the US and Europe. For more information, visit www.jumio.com
2 http://internetretailing.net/2014/06/mobile-shopping-drives-uk-retail-e-commerce-sales-study-says/