Mobile Payment Statistics Review July 2015

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