See Full Research Library
Join Mailing List
Author: Mercator Research Team Published on: November 14, 2018
Mobile payment adoption in U.S. stalls with half of consumers using mobile payments.
Mercator Advisory Group survey finds more U.S. consumers use mobile apps, especially retailer apps, than use online web to pay by mobile.
This study, based on Mercator Advisory Group’s CustomerMonitor Survey Series payments survey conducted using an online panel of 3,002 U.S. adults in June 2018, examines the demographic shift and changing landscape of web-enabled mobile users, consumer use of mobile devices for making payments and shopping online and in stores, use of in-app payments, related payment features including e-couponing, e-receipting, and e-loyalty as well as alerts and emerging digital platforms such as voice-activated conversational interfaces and wearables for payments.
“For mobile payments to really catch on in a much broader scale, consumers need to find real benefits from using a payment app, more than just a way to pay. The convenience factor, rewards, and more robust shopping aids can help stimulate its use. Merchant terminals are slowly converting to accept mobile payments. The apps now have to better integrate with consumers’ daily routines, even social interaction to stimulate greater momentum,” stated Karen Augustine, author of the report and manager of Primary Data Services at Mercator Advisory Group, which includes the CustomerMonitor Survey Series.
Retailer mobile payments apps is the most popular way to pay by mobile, as 34% of smartphone owners used them to pay in the previous year and the only method that showed even slight growth from 2017. Nearly 1 in 4 smartphone owners use universal mobile payments such as Apple Pay, Samsung Pay, or Google Pay to pay online or in stores and nearly 3 in 10 use service-oriented apps such as Uber or Fandango to make mobile payments in app for on-demand services. Interestingly, the use of these mobile payment apps has caused the sharpest decline in web browser use for mobile payments.
Mobile payment apps are beginning to improve the value and convenience of payments compared to using the web browser or even traditional cards. Retailers are offering discounts to use their mobile payment apps with special offers only available when paying by app. New features such as mobile order and pay, often a feature in many retailers’ mobile payments apps, offer faster delivery with greater convenience than standing in lines at checkout, bolstering mobile payment use.
The report is 87 pages long and contains 37 exhibits.
Companies mentioned in this report include: Airbnb, Amazon, Apple, Burger King, Capital One, Chase, Cheesecake Factory, Chipotle, Cumberland Farms, CVS, Domino’s, Dunkin’ Donuts, ExxonMobil, Fandango, Fitbit, Garmin, Google, Gulf Oil, Lyft, McDonald’s, Panera Bread, Papa John’s, Pizza Hut, Samsung, Subway, Target, Uber, Walmart, and Wells Fargo.
(Click to Enlarge)