Mobile retail is expected to grow by 42% per year for the next five years to be worth £2.5bn by 2016.

The average spend per year by those shoppers using their phones to purchase is forecast to increase from £100 now to £180 over the period, a study for PayPal found.

Consumer adoption of smartphones and the increasing number of retailers offering mobile shopping options is anticipated to drive the rise in sales across all product categories.

 PayPal Merchant Services general manager Cameron McLean said: “The convenience of a connected device that can be used almost anywhere will lure increasing numbers of UK consumers into mobile buying.”

“Our report shows that this consumer pull 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.”


 20112016Annual growth rate
Mobile Retail Spending£438£2,57342.50%
% Online Retail Spending1.50%5.9% 
Mobile Retail Spending by Category   
Vouchers & Deals£32£19844.40%
Fashion (Clothing, Accessories, Footwear)£81£50043.90%
Health & Grocery (Food & Drink, Beauty, Health)£46£26642.10%
Media (Books, Music & Videos)£83£45440.40%
Computing and Appliances£102£54239.60%

·        Forecast excludes digital downloads, travel and financial services. All figures in £ millions.