The report reveals that although US retailers will miss out on up to USD 8.6 billion in sales due to the prevalence of outdated mobile checkout experiences.
Data released by the National Retail Federation shows that holiday sales for 2014 are predicted to rise to USD 616.9 billion, a 4.1% increase over 2013, including up to USD 105 billion in online sales.
According to IBM’s holiday predictions, 20% of online US sales during Q4 2014 will be made on mobile. But recent reports find that between 47 and 72% of shoppers abandon purchases on mobile devices due to checkout friction, with that number only expected to grow. In addition, the majority of shoppers (57%) do not attempt the transaction later on a desktop computer, meaning between USD 5.6 and USD 8.6 billion in the form of lost sales stands to be left on the table by US retailers this holiday season.
In addition to revenue lost due to friction at the time of checkout, retailers risk losing money on future purchases as well, with 63% of consumers 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 one-half of consumers (47%) said they failed to complete a purchase because the checkout process took too long. Other reasons shoppers fail to complete a mobile transaction include: the checkout process being too difficult on their device (41%) or failing to complete their purchase because it would not go through (23%).
Jumio is a payments and ID software-as-a-service company that uses proprietary computer vision technology to reduce mobile/online payment and ID friction and fraud. The company 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. Jumio operates globally with offices in the US, Europe and Asia.
IDology provides technology solutions that verify an individual’s identity and/or age for organizations operating in a customer-not-present environment.
For more information about Jumio, please check out a detailed profile of this company in our dedicated, industry-specific online companies database.
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