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Pairing Rewards with Payments
Of consumers who already make mobile payments 60 percent would do so more often if they received instant coupons as a result
Reference(s): http://www.cmo.com/articles/2014/12/9/15_stats_mobile_payments.html
36 percent of consumers said they provide personal information in exchange for rewards
Consumer Confidence in Mobile Payments
More than half of US internet users believed mobile payments would “probably” become widely used in the next five years; 23.2% were certain about widespread adoption of mobile payments
Two-thirds of those surveyed said they were interested in learning more about switching to a mobile wallet
Most consumers would be willing to use mobile wallets only if at least 75% of retailers, hospitals and other relevant entities accepted them
Mobile Payment Users
Use mobile to pay at retailers 14%
Receive payments from individuals 6%
Reference(s): http://knowledge.wharton.upenn.edu/article/consumers-arent-buying-mobile-wallets-yet/ http://www.emarketer.com/Article/Consumers-Bullish-on-Mobile-Payments-Future/1011265
Ease of Use (if they* use it)
84% Doesn’t Use Mobile Payments
16% Use Mobile Payments**
No
Yes
Mobile payments was easier than traditional methods
Reference(s): http://www.emarketer.com/Article/Consumers-Bullish-on-Mobile-Payments-Future/1011265
*Mobile Users in US, Canada, UK, France, and Germany ** Used mobile payments in the last 3 months
Preferences and Awareness
56%of respondents prefer making purchases from within an app to
making them on a mobile website
Then consumers, 51%, prefer to have a unified mobile payment app that can be used in multiple stores while integrating individual store coupons and loyalty
But, 34% of consumers aren’t even aware if their favorite stores offered
mobile payments or not
Reference(s): http://loyalty360.org/resources/article/customer-engagement-via-mobile-wallets
Mobile Payment Market Size Potential
Today, the total transaction is above $50 billion when including all transactions done with a mobile phone including in-app payments and mobile websites
1.59 3.5
8.95
27.47
64
84.4
142
2013 2014 2015 2016 2017 2018 2019
US Mobile Payment Transaction Value in Billions($) 2013-2019*
*2015 to 2019 estimated value
Reference(s): http://bits.blogs.nytimes.com/2014/11/17/u-s-mobile-payments-market-to-boom-by-2019-research-firm-says/?_r=1
Alternative Payment Methods and Mobile Payment Adoption
Smartphone conversion rates are much higher when retailers offer alternative payment methods, such as PayPal, Amazon Payments, Google Wallet, or Apple Pay.
Of purchases on smartphones 23% use alternative payment methods. Users cite the reason for using alternative payment methods is because they find it more convenient.
Reference(s): http://www.cmo.com/articles/2014/11/19/retailers_with_digit.html
Starbucks
Of those using mobile payments 29% are exclusive to the Starbucks app
And they care about q Speed of checkout (66%) q Automatic points earned (65%) q Special offers (59%) q Not having to carry credit cards (38%)
13 million mobile users are making 7 million transactions a week or 16% of all transactions at Starbucks
Why 29% matters: Apple Pay and Goggle Wallet only account for between 4% to 6% of mobile payments
Reference(s): http://loyalty360.org/resources/article/customer-engagement-via-mobile-wallets
http://www.forbes.com/sites/roberthof/2015/01/22/once-again-starbucks-shows-google-and-apple-how-to-do-mobile-payment/
Apple Pay
Who Is Using it
23.5% of Apple Pay users are 16- to 24-years old 35% of Apple Pay users are 25- to 34-years old
But of iPhone 6 users that say “no, my credit works just fine” 36.6% of those are 25- to 34-years old
Nearly the same as the over-50s iPhone 6 user who will not use Apple Pay, 32.5%
Of iPhone6* users 15% have tried Apple Pay, only 6% said they continued to use it
*Apple Pay is only offers to iPhone 6 and 6 Plus for in-store purchases Reference(s):
http://thefinancialbrand.com/52265/apple-mobile-payment-tipping-point-research/ http://www.pymnts.com/apple-pay-adoption/#.VbZqxMZVhBd
Bottom Line: Mobile Payment Needs to be Secure and Convenient and part of your loyalty marketing strategy
Reference(s): http://newsroom.mastercard.com/press-releases/13-million-social-media-conversations-show-what-consumers-
think-about-mobile-payments/mastercard_prime_infographic_final-2/ http://www.creditcards.com/credit-card-news/mobile-payment-statistics-1276.php
53% of American say they will never use mobile payments because of the lack of security
97% of merchants cite that customer adoptions driven by convenience of use