On-Demand Economy Spurs Customer Engagement and Mobile Payment Growth
Immediacy and convenience have become the dual watchwords of many U.S. consumers in the age of mobile apps. Consumers now use on-demand services to fulfill everyday needs such as getting somewhere, finding what, when, and where to eat, and buying products for home delivery. This phenomenon did not happen overnight. Amazon built the online business model by offering increasingly fast delivery. An estimated 65 million Amazon Prime customers pay an annual membership fee to receive items within two days. And if that’s not fast enough, they can choose Prime Now and receive items within two hours in certain urban markets. Starbucks has shaved 3 to 7 minutes off waiting in a store line though mobile order and pay. And now Amazon and Walmart have eliminated waiting completely by offering shoppers a mobile instant self-checkout system. It’s no surprise that U.S. consumers have grown accustomed to ordering and getting goods and services when and how they want them, and have propelled the “on-demand economy” into one of the fastest-growing sectors of the U.S. economy.
This new research report, The On-Demand Economy: Mobile Apps That Deliver Convenience Boost Payments Volume, describes the most popular on-demand services categories and how the key providers are bringing a new dimension in customer engagement to their markets. Many of the on-demand providers have become industry disruptors and are being met with challenges from legacy competitors and government regulators alike. But U.S. consumers are voting with their wallets and are propelling on-demand businesses to record levels of purchase transactions.