The Rise of Mobile-First Shopping and Merchant Challenges

In today's digital age, mobile devices have become pivotal in the realm of commerce, revolutionizing both online and in-store shopping experiences. The increasing shift towards digital payments on these devices is shaping the future of commerce, as highlighted in the PYMNTS Intelligence report “The 2025 Global Digital Shopping Index: U.S. Edition,” commissioned by Visa Acceptance Solutions. Despite the clear trajectory towards mobile-first shopping, merchants face challenges in keeping pace with evolving consumer expectations due to technological constraints.

Consumer Trends in Mobile Shopping

The report, which surveyed over 18,400 consumers and nearly 3,500 merchants across eight countries, provides a comprehensive view of the state of mobile shopping in the United States. Specifically, it involved more than 3,100 consumers and over 500 enterprises in the U.S., revealing that 42% of U.S. shoppers used their mobile phones for their most recent retail purchase. This trend spans both online and brick-and-mortar environments, underscoring the ubiquity of mobile devices in the shopping journey.

Demographic Insights

The data paints a picture of a generational shift in shopping habits, with millennials and Generation Z leading the digital shopping charge. These younger demographics engaged in mobile shopping an average of 62 times per month, significantly outpacing Generation X at 45 times and baby boomers at 29 times. This trend underscores the need for businesses to tailor their digital strategies to meet the preferences of these tech-savvy consumers.

Merchant Concerns and Mobile Features Demand

While merchants recognize the importance of reaching consumers via mobile devices and the shift from cash to digital payments, there is apprehension about keeping up with these demands. In the U.S., 52% of retailers expressed concern that their current payment systems might not suffice in the next three years. This anxiety stems from the rapid pace of technological advancements and the evolving landscape of consumer expectations.

Consumer Preferences and Merchant Challenges

The report highlights a variety of mobile-first features that consumers demand. Among U.S. in-store consumers, 59% used price and savings features, while 15% took advantage of payment and financing offers, indicating a keen awareness of inflationary pressures and budgeting needs. A key area for innovation is stored payment credentials, which are particularly significant in the U.S. market. The report found that 67% of U.S. shoppers used stored credentials for their most recent online purchases, pointing to the necessity for merchants to provide seamless and secure storage options.

The Importance of Ease and Convenience

The willingness to store payment information with merchants has been on the rise, with 59% of U.S. shoppers citing ease and convenience as primary factors. Speed also plays a critical role in this decision-making process. However, merchants face headwinds such as the pace of technological change, privacy and security concerns, and the overall impact on customer experience.

The Demand for Third-Party Solutions

In response to these challenges, there is a strong demand among U.S. merchants for third-party payment solutions that can alleviate some of these burdens. The report reveals that 41% of U.S. shoppers store credentials with merchants most, or all, of the time. Only a small fraction of consumers, 17.9%, reported that they "rarely" store credentials, and an even smaller 12.6% said they "never" do so. This trend indicates a growing acceptance and enthusiasm for stored credentials, urging companies to adapt accordingly.

Conclusion

As mobile-first shopping continues to dominate the commerce landscape, merchants must navigate the challenges of keeping up with technological advancements and consumer expectations. The insights from the PYMNTS Intelligence report highlight the pressing need for businesses to innovate and invest in robust digital payment solutions. By addressing these challenges, merchants can better cater to the preferences of a digitally savvy consumer base, ensuring a seamless and secure shopping experience in the ever-evolving commerce environment.