The average Australian smartphone owner has 29 apps installed but uses only five different apps per day, according to a PayPal report.

The tough competition for user attention means businesses need to do more than re-skin their website, according to the payments giant.

“Nearly half (48 per cent) will delete an app if it doesn’t offer more than the mobile browser. This suggests that if a business does develop an app it has to have better functionality and/or offer benefits beyond what is available on the mobile site,” the report says.

15 per cent of Australian organisations provide an app in 2017, which is a significant increase from the eight per cent in 2016, the report said. The number is tipped to rise even more, according to PayPal.

“In total, 42 per cent of Australian businesses have, or plan to have, an app within the next three years to meet consumer demand,” the report said. Consumers choose apps if they offer an improved experience (56 per cent) or exclusive deals (40 per cent) rather than improved security (14 per cent) or advocacy from family and friends (11 per cent).

Those businesses clamouring for an app may be looking to capture a share of the younger consumers – the most frequent app purchasers. 39 per cent of 18-34 year olds make app payments at least once a week according to Paypal.

PayPal’s research is based on a survey of 1011 consumers and 408 businesses nationally.

Generation Z

Gen Z users (18-22 year old) are the most mobile savvy generation and 82 per cent shop on mobile. They are also the hardest to please. According to the report, these young users are more “experience orientated” and have higher standards.

“The generation is more attuned to a negative mCommerce experience than any other generation surveyed,” the report said.

They are more aware of digital inhibitors like slow page loading, screen sizing and checkout problems, and more than half (55 per cent)  had abandoned a mobile purchase it was too difficult, according to the report.

Despite the high standard, Gen Z may prove to be a lucrative market. They are more likely to increase their mobile payments and are more likely to make spontaneous purchases, according to the report.

Overall Australians are becoming more comfortable using their mobile devices to make purchases, according to PayPal. Nearly three quarters of Australian consumers (72 per cent) now use mobile devices for payments and nearly half (48 per cent) are making payments via mobile at least weekly, according to the report.

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