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April 10, 2014

The 5 Essential Truths About Payments, Commerce and The US Digital Consumer

PYMNTS.com Analysis of Key Facts Reported in the recently released 2014 comScore US Digital Future

in Focus Whitepaper

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1. Multiple Devices Rule

The Consumer Experience

What You Need To Know* 1.56 percent of consumers use multiple devices to access the internet 2.Virtually all of the growth in internet usage has come from smartphones and tablets3.Smartphone use has surpassed desktop usage, but is incremental to desktop usage.

**Source: comScore

What You Need To Do About It**

•Omnichannel will also rule the retail and commerce experience

•Consumers will expect to move seamlessly between device environments and will expect you to do the same

•Monetizing that experience will require a value-add and compelling “ask” of that consumer – ad prices are depressed given the availability of inventory and offers are too prevalent

**Source: PYMNTS.com

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3. Mobile Drives Social Content

Sharing

What You Need To Know* 1.Growth in social network traffic is being driven by mobile devices. 2.“Camera content” was a key driver of that growth, including the creation of mobile-only social networks like Vine and Instagram3.Monetization is trending towards embedded ads in posts, newstreams and stories so that it looks more like content and less like ads

*Source: comScore

What You Need To Do About It

•Consumers increasingly rely on social referrals for decision making on a variety of products and services – good news travels fast but bad news travels even faster.

•Cameras enable the easy capture and sharing of information that helps with the consumer’s purchase decision, including pricing checking and inventory availability

•Innovators are harnessing the power of cameras to help retailers convert showroomers into customers as well as capture important data on purchases that refine their targeting and offers strategies

**Source: PYMNTS.com

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4. Mobile Monetization Disappoints

What You Need To Know* 1.Native ad units drive growth in ad revenues for many social networks, but most digital ads are not even seen by consumers (56 percent)2.Retail ads underperform, as a category, while Financial services tend to neither over or underperform. 3.The big “but” is that mobile ads tend to lift purchase intent by 28 percent

*Source: comScore

What You Need To Do About It

•The real-time connection between retailers and consumers provide a perfect channel for retailers to serve promotions, ads and/or other offers during the purchase process

•Context and relevance become critical in order for consumers to “welcome” the intrusion

•Beacon technologies provide merchants and consumers with a valuable micro-targeted environment with which to further reach consumers. Content and relevance will become even more critical in order to avoid turning consumers off

**Source: PYMNTS.com

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5. Mobile Blurs Payments and

Commerce Lines

What You Need To Know* 1.Mobile is a small (12 percent) but growing percent of online retail spending, growing 23 percent/year2.Tablets drive higher per user spend, mobile drives more overall spend 3.Mobile drives more than 10 percent of discretionary spending, expected to grow to 15 percent by 2015.

*Source: comScore

What You Need To Do About It

•Having a convenient way to pay online will increase overall spend – entering account information online is cumbersome

•There is a strong relationship between existing digital wallets/wallet providers and top online merchants: Amazon/One click, eBay/PayPal, Apple/iTunes

•The holy grail for payments and commerce is responding to the blurring of on and offline commerce channels, consumers use of multiple devices and a single, seamless and simple digital way to pay.

**Source: PYMNTS.com

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For More Information

Please see our exclusive PYMNTS.com commentary on the “must have” insights on this topic

•MIRROR, MIRROR, ON THE WALL, WHOSE DIGITAL WALLET WILL BE USED MOST OF ALL?•APPS AND MERCHANTS AND PAYMENTS, OH MY!•THE PAYMENTS SIXTH SENSE •THE COMING PHYSICAL RETAIL DEATH SPIRAL

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To download the comScore U.S. Digital Future In Focus 2014, visit this link NEED TO PUT LINK ON THE SITE 2014 U.S. Digital Future in Focus - comScore, Inc

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