Mobile payments are far from mainstream, according to this week's compilation of stats. While consumers typically gravitate toward convenience--especially so during the busy holiday-shopping season--security concerns are still a major issue, studies find.
That said, adoption is on the rise, especially within mobile-wallet products from well-known, trusted companies, such as PayPal, Apple, and Google. Read on for the state of mobile payments, and what to expect in the next few years.
1. U.S. proximity payment transaction values doubled between 2012 and 2013 to reach $1.59 billion as more consumers warmed to paying for their daily cup of coffee with their phones. eMarketer projects transaction values will double again this year to reach $3.50 billion and further accelerate through 2016.
2. While just 13.5% of U.S. Internet users had made a mobile payment, more than half believed mobile payments would “probably” become widely used in the next five years, and 23.2% were certain about widespread adoption of mobile payments.
3. Mobile-based payments in the United States are expected to reach $142 billion in volume in 2019.
4. Services like Venmo, Square Cash, PayPal, and even Gmail allow users to send money back and forth quickly. Forrester expects this activity to grow to $17 billion in volume in the United States by 2019, from $5.2 billion this year.
5. Fifty-six percent of consumers are willing to use their mobile device to pay for products they are shopping for.
6. Convenience is the main reason behind consumer interest in mobile payments. Approximately 58% of consumers said they favor the convenience that mobile commerce offers over more traditional forms of commerce.
7. Fifty-five percent of U.S. Millennial smartphone owners who use mobile payments prefer to have a unified app that can be used in multiple stores while integrating individual store coupons and loyalty programs.
8. Twenty-nine percent of U.S. smartphone owners who have used mobile payment apps to make a purchase have used the Starbucks app, compared to 25% for Google Wallet, 10% for Visa Checkout, and 9% for PayPal Wallet.
9. Smartphone conversion rates are much higher when retailers offer digital wallet payment options, such as PayPal, Amazon Payments, Google Wallet, or Apple Pay.
10. Just 23% of purchases on smartphones use alternative payment methods, while just 16% use digital wallets across desktops and 19% use the payment option on tablets.
11. Forty-one percent of North American smartphone users are highly aware that their phones can be used as payment devices at retail counters, yet only 16 percent have done this.
12. Sixty percent of consumers who already make mobile payments said they would probably do so more often if they received instant coupons as a result, while some 36 percent said they would hand over personal information in exchange for such rewards.
13. In tracking more than 13 million social media comments across Twitter, Facebook, online blogs and forums around the world, MasterCard found improved sentiment toward mobile payments and rapid growth in consumer use and merchant acceptance. Merchants carry an 88 percent positive rating with many touting mobile acceptance as a competitive advantage.
14. Most consumers would be willing to use mobile wallets only if at least 75% of retailers, hospitals and other relevant entities accepted them.
15. In a study that surveyed over 2,000 Internet users in June, four of five respondents said they were aware of mobile wallets from companies such as Paypal and Google, while only 32% said they have used the products to pay for goods or services. Among the respondents who used a wallet app, usage was intermittent with over half of consumers only using the wallet on a monthly or quarterly basis.
See what the Twitterverse is saying about mobile payments: