Despite all the buzz, with more than half of consumers aware that they can make payments through their mobile phones – only 18% of Americans use their mobile phones to make at least one payment a week.
According to a new report from Accenture the number of North American consumers who know they can use their phones as a payment device jumped nearly 10 percentage points since last year, to 52%, actual mobile-payment usage remained flat, growing only 1%.
The survey identified two groups of early adopters driving mobile-payments usage: high-income consumers and Millennials. Consumers with household income of at least $150,000 are the most-avid adopters, with 38 percent using their phones to make payments at merchant locations at least weekly. Twenty-three percent of Millennials – people between the ages of 18 and 34 – reported using their phones to make mobile payments at a merchant location at least weekly compared to an average of 18 percent for other age groups.
The survey also identified ways to increase mobile-payment adoption rates – namely, by giving consumers better security, incentives and rewards. More than three-quarters of consumers who currently make mobile payments said they would increase their usage if offered discount pricing or coupons based on past buying behavior (cited by 79 percent of users) and if they received reward points (cited by 78 percent). Additionally, more than half of those not currently making mobile payments would make them if offered discount pricing or coupons (cited by 54 percent of non-users) or reward points (53 percent).
When looking at which mobile payment ecosystems are gaining the most momentum, the study found that Apple Pay – just one year after launching – is used for more than two-thirds (68 percent) of all mobile payments in U.S. stores.
In terms of emerging trends, the survey found continued consumer interest in connected commerce (wearable or connected payment devices) and peer-to-peer (P2P) payments. Even though the payments industry has not yet scratched the surface on the “art of the possible” in connected commerce, one in five consumers (20 percent) said they have used a wearable device to make a payment at least once, and the same number of respondents reported being interested in making a payment through a connected smart device such as a smart appliance or a smart car.
The survey also pointed to a high level of adoption for P2P payments, as well as room for continued growth. More than two out of every five consumers surveyed (42 percent) reported they have used P2P payment apps, and 15 percent said they make P2P payments weekly.
For data, background and forecasts on Mobile Payments: 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).