5 in-app payments trends: What to expect in 2018
In-app payments are gaining their momentum now. The recent study has shown that in 2017 people spent 37 billion USD on in-app purchases leaving app downloads profits amounting to 29 billion USD far behind.
And even though, only 5% of all smartphone users make in-app payments, and the average size of their purchase is 20 times higher than what app downloads bring in.
Now, that’s kind of math you like, right?
And we know what you’re thinking. With such a tendency, should you also consider implementing in-app payments?
That sounds smart. But before you set your mind to it, let’s see what in-app payments trends you should know in 2018.
Five in-app payment trends of 2018
Yes, 2018 is all about security. That’s why it’s #1 on our list of in-app payment trends.
With more and more merchants coming up with safer ways to process online payments via their sites or inside their apps, more sophisticated cybercriminals come into being.
They know their ways around cybersecurity. They are always on the lookout for a way to break down the system.
And that is why security if #1 in-app payments trend this year.
Security is at the heart of every business. Not one customer will want to make a purchase inside an app that doesn’t look safe or doesn’t comply with international security requirements.
That’s why, paying close attention to security measures is a way to an increased retention rate, customer loyalty, and, of course, the reason you started it all in the first place – the revenue.
Speed matters. The faster the transaction goes, the higher chances for reduced cart abandonment are. For this reason, we call speed the second among in-app payment trends.
Users are spoiled with the speed of their transactions. And you can’t blame them for it. We all live in an on-demand world. We’re not willing to wait an extra second when placing an order or making a purchase. And like it or not, you have to take this into account in your business.
However, you can cut yourself some slack. Not everything here depends on you. You can implement the most advanced technologies to make in-app payments a seamless experience, but your bank might need more time to process the transaction.
They mean well. Instant in-app payments can coincide with the growing fraud and chargeback rates.
Yet, consider discussing instant in-app payments with your merchant account provider in case you don’t like the speed.
iOS vs. Android.
This is a never-ending battle. People have been arguing about their preferences for a long time now. And even though we won’t look into differences between these OS, there is one undeniable fact.
The Braze reports that “the average in-app payments size per user is $1.08 for iOS users and $0.43 for Android users.”
The number of the Android users though often outnumbers those of iOS. Take this into account when considering various in-app payment trends.
This is what you have to bear in mind when implementing in-app payments. We’re not saying that having an Android app is a dead-end idea. But you have to know your odds from the start.
You might also like 5 Trends for the Future of Payment Processing – Trends in Payments
Bring wearables into the picture too. Even though they come in third after smartphones and tablets in the in-app payments revenue rates, they still matter.
According to the study presented by the Optile, with the emergence of IoT (the Internet of Things), around 83% people would like to use these technologies when shopping online. This includes in-app payments.
So, consider adding in-app payments to the wearable devices. With them, you will be a few steps ahead of your competitors. But, of course, it depends on your type of business. Our advice is to keep an eye on such in-app payment trends but have your own business in perspective.
The truth is that apps that users rate high bring in better revenue via in-app payments. The reason for this is probably in the trust. The higher and the more rates the app has, the higher chances are that it is trustworthy and reliable. So, making a purchase inside of it is not scary. Once you realize the importance of these in-app payment trends, it can make a difference for you!
Sure thing high rates don’t come overnight. But this can stimulate you to improve your app for customers to rate it better.
These are the in-app payments trends you can expect in 2018. In our next article, we will talk more about in-app payments pros and cons. You don’t want to miss that information. So, subscribe to our newsletter to stay tuned!