The mobile retail market will grow an average of 42% each year and be worth £2.5bn by 2016, PayPal has predicted.
The eBay-owned payments firm says UK mobile retail sales currently represent 1.5% of overall UK online retail sales, or £438m. But by 2016, UK mobile retail sales will hit £2.5bn as just over 14 million adults regularly shop via their mobiles – 5.9% of online sales.
In its latest research report, PayPal says each mobile shopper currently spends an average £100 per year in 2011 – by 2016 this will jump to £180 per year.
The company anticipates it will handle over $3.5bn (£2.2bn) in mobile payments globally this year alone, with over one million UK customers and eight million global customers choosing to shop by mobile.
It adds the market will grow at a compound average of 42.5% per year, fuelled by increasing numbers of mobile shoppers, a rise in smart phone use and increasing numbers of retailers developing easy to use mobile shopping experiences.
Ticketing will see the biggest growth rate climbing 46.6% from £80m to £545m, followed by vouchers and deals (up 44.4% to £198m); fashion (up 43.9% to £500m); health and grocery (up 42.1% to £266m); media (up 40.4% to £454m) and computing and appliances (up 39.6% to £542m)
PayPal UK's general manager of merchant services Cameron McLean said: ‘Our report shows that consumer pulls will be matched by a retailer push, with mobile-savvy retailers offering slick, sophisticated mobile experiences that rapidly become a key part of an overall multi-channel strategy.
‘The act of paying for something should be as seamless as the decision to buy it, and that’s where we can help retailers grow their mobile business. Over a million PayPal UK customers have sent a payment on their mobile.’