Card-not-present transactions include e-commerce and mobile payment transactions, online bill pay, over-the-phone transactions, and the like — basically any card-based transaction made without presenting a physical card to a merchant.
- Total general purpose payment card transactions, including credit, debit, and prepaid card-present and card-not-present transactions, will increase at compound annual growth rate (CAGR) of 6.2%, from 80 billion in 2013 to 108 billion in 2018.
- Card-not-present transactions will grow at more than double that rate, at a CAGR of 15%, from 13.6 billion transactions in 2013 to 27.3 billion in 2018.
- Card-present transactions will grow much more slowly at a CAGR of 4%, from 66 billion in 2013 to 80.7 billion in 2018.
- Card-not-present transactions will account for a quarter of general purpose payment card transactions by 2018, up from 17% in 2013.
We arrived at our forecast based on data from the Federal Reserve, past growth trends, and our close tracking of the card payments industry.
Here is a look at share:
E-commerce has been upending the retail industry over the past few years, and retailers are desperately trying to figure out the happy medium of how many stores they need to operate and how much to invest in e-commerce.
And, if comScore’s latest U.S. e-commerce data is any indication of what to expect this year, e-commerce sales will continue growing at a rapid pace. BI Intelligence has prepared the chart below, showing how e-commerce sales have trended since 2008.
- PC-based e-commerce spending in the U.S. grew 12% year-over-year to $56.1 billion in the first quarter of 2014. This is the fourteenth quarter in a row that desktop-based e-commerce spending has grown by double digits.
- Mobile-based e-commerce spending grew 23% year-over-year to $7.3 billion in the first quarter.
- PC-based spending accounted for 88.5% of all e-commerce purchase volume in the first quarter. For comparison, PC-based spending accounted for 89.5% of all e-commerce spending in the first quarter of 2013, so mobile is taking up a bigger share of online purchases.
BI Intelligence, Business Insider’s premium research service, recently launched a new vertical dedicated to the e-commerce industry. Subscribe today to stay in the know on the rapidly changing e-commerce industry.
With all the talk of showrooming — consumers armed with smartphones, comparing prices in-store — little has been made of the phenomenon known as reverse showrooming. Reverse showrooming, in which consumers compare prices online, but then go to the store to buy, is actually more common than showrooming and offers bricks-and-mortar retailers a real advantage over e-commerce only companies.
In the U.S., 69% of people have reverse showroomed, while only 46% have showroomed, according to a Harris poll.
In a recent report from BI Intelligence, we examine the numbers behind showrooming and reverse showrooming, what’s driving each trend, and what the different showrooming behaviors look like. We also look at what in-store advantages retailers have, and what they are doing both to capture in-store sales from reverse showroomers and to drive up purchases across channels.
Here are some of the key ways bricks-and-mortar retailers are leveraging their advantages to drive more reverse showrooming.
- Free Wi-Fi: Retailers have begun installing free Wi-Fi in their stores. This would seem like exactly the wrong approach — why give consumers an even easier means of looking up product reviews and prices online? But providing free Wi-Fi is a way to keep the consumer happy in-store and encourage use of a retailer’s own mobile sites and apps.
- Smartphone Savings Programs: Retailers like Target are rolling out in-store smartphone saving programs, which provide consumers with discounts via the retailer’s mobile app. These are also often integrated with mobile loyalty programs in which consumers earn points for making purchases.
- Bringing Social And Online Trends Offline: Taking the online retail research people are doing and weaving it into offline promotions is perhaps the most overt way to capture the attention of reverse showroomers. Over the summer, Nordstrom rolled out an in-store program that promotes the retailer’s top-pinned items on Pinterest.
- Online Ordering, In-Store Pickup: A variety of retailers, from Target to Toys “R” Us and The Container Store, have integrated their online and offline stores to provide consumers with online ordering and in-store pick-up options. Sears has even recently introduced online ordering, with drive-thru pick-up. The idea is to offer convenience — giving consumers what they want right away, without dealing with in-store frustrations.
- Customer Service: Many retailers have started working to make sure their sales staff is knowledgeable and helpful. A better-informed sales staff was by and away the most likely reason shoppers said they would be more likely to buy in store, according to a Deloitte study. (See chart, above.)
- New initiatives for the connected in-store experience keep popping up: tablets and mobile phones used as register systems, robotic arms that deliver clothing into dressing rooms, and beacon hardware, which powers in-store maps and automatic hands-free payments.
- The key rationale behind all these changes: successful retailers are beginning to think of themselves less as purveyors of goods, and more as all-around consumer resources.
When you read this:
Programmatic to See Big-Time Growth in Latin America, Fueled by Brazil
And you see this (Digital Attack Map – NOTICE BRAZIL)
Source: Google Digital Attack Map
The growth in online shopping is forcing dozens of major retailers to close hundreds of unprofitable stores.
The trend is upending the traditional retail model and forcing many shopping malls out of business, as Business Insider Intelligence reported Thursday.
Here’s a graph from the report showing some top retailers’ plans to downsize.
With King, the London-based game maker behind the incredibly successful Candy Crush Saga, expected to price its initial public offering tonight, we’ve been given an ideal opportunity to look back at the sizzling growth of the digital and mobile gaming space.
In short, it’s gobsmacking.
While music, media and movie industries have all struggled to reconcile their business models to the digital age, video games have been a perfect fit. Consumers spent $34 billion on downloadable video games last year, according to App Annie, more than four times what they spent on online movies, for example.
And that $34 billion figure doesn’t even include the lion’s share of the $16 billion in spending on mobile apps that goes to games. Macquarie Equities analysts report that 91% of purchases in Google Play, 80% of iPhone app purchases and 72% of iPad app purchases in the iOS store were tied to games.
Why has mobile gaming been so successful? A lot of it has to do with the “free-to-play” pricing model. Essentially, apps are free to download, but players then buy things within the game. Last month, nearly all of the top 100 grossing apps on the major mobile platforms used this model.
King’s games like Candy Crush Saga are free-to-play too. Essentially, if a user gets stuck on a certain level, they can pay to make progress, or to unlock new episodes. Only 5% of King’s users actually buy things when playing the game. But Candy Crush has a massive base of users. (It was around 408 million average monthly average users in the December quarter). So even if a relatively small sliver of players make purchases, it still generates solid profits.
As we recently noted, King is profitable. The company made $568 million last year. That in itself is an achievement, given 56% of tech companies that went public last year were losing money, according to PwC.
The big question is whether King’s profits are sustainable. According to thecompany’s IPO filing (p5). both revenue and profit began to slow in the fourth quarter of 2013.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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