M-payments could have saved retail industry GBP 463 m -report

Monday 24 March 2014 09:23 CET | News

Mobile payments could have saved retailers GBP 463 million in lower transaction costs in 2013 if they would have shifted to mobile payments from cash, credit and charge cards, recent findings indicate.

According to a report commissioned by mobile payments firm Zapp and published by the Centre for Economics and Business Research (Cebr), retailers would benefit from reduced online checkout times with mobile payments. Cebr estimates that these reduced checkout times could have boosted internet retail sales by GBP 1 billion last year.

The research revealed that almost three fifths of shoppers would abandon a purchase when confronted with a long queue.

Additionally, the report revealed that the instant settlement offered by services such as mobile payment should provide some respite for the many businesses in the UK struggling with cash flow issues. The report highlighted that nearly a fifth of firms in Q1 2014 report that late payment is a greater challenge than a year ago.

Previous research by the Cebr predicted that 20 million adults will use their mobiles to pay for goods and services by the end of the decade, with the value of purchases tripling from current levels to GBP 14.2 billion in 2018. By 2020, mobile payments will represent 1.4 % of total consumer spending.

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Keywords: m-payments, retail industry, report, Zapp, UK, Cebr, mobile payments
Categories: Payments & Commerce
Countries: World
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