A new study reveals PayPal is already feeling the heat of Apple Pay in just the first six months. The pain will only get worse as more consumers indicate they prefer mobile payments over digital payments.
NY-based says its March study of more than 4,000 respondents found 25% of smartphone owners say they are likely to use mobile payment apps over the next 90 days (11% Very Likely; 14% Somewhat Likely). This number is up just 1-pt since 451’s previous ChangeWave survey in December 2014, but is a full 6-pts higher than one year ago.
Smartphone owners using iOS (34%) are more than twice as likely to use mobile payment apps compared to Android (16%), BlackBerry (13%) or Windows Phone (5%) users.
Apple Pay is the top choice in terms of mobile payment applications consumers plan on using going forward. A total of 45% say they plan to use Apple Pay – which is a 5-pt jump since December.
PayPal (28%) is still solidly in second place, but is down 4-pts compared to three months ago.
Looking at satisfaction among consumers who are already using mobile payment apps, Apple outperforms, with 66% of those who have used Apple Pay saying they’re Very Satisfied with the service.
PayPal (45%) is in second place, followed by Google Wallet (33%).
One in four respondents (24%) believe mobile payments are more secure than traditional credit cards (6% Significantly More; 18% Somewhat More), while 27% think they’re less secure (16% Somewhat Less; 11% Significantly Less). This is a net 3-pt improvement compared to December 2014 and a major 26-pt improvement since a year ago.
Other key findings include:
** Respondents interested in buying an Apple Watch are twice as likely (54%) as all other smartphone owners to say they’ll use mobile payment apps (29% Very Likely and 25% Somewhat Likely). An upcoming 451 Research report based on a new ChangeWave survey will be taking a close-up look at wearable device trends and demand for the Apple Watch.
** The Secure Storage of Financial Account Information (84%) is the most important feature in a mobile payment app according to likely users, followed by Widespread Acceptance Among Merchants (70%).
** The survey looked at overall consumer interest in Samsung’s new mobile payment service set to launch this summer. A total of 8% of respondents say they’re Very or Somewhat Likely to use Samsung Pay in the future. But that number jumps to 25% among Samsung smartphone owners, and surges to 46% among those planning to buy a Samsung smartphone in the next 90 days.
For data, background and forecasts on Apple Pay: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).