According to a recent in-depth report on mobile payments from BI Intelligence, this will be thanks to the growing popularity of Apples new Apple Pay system. The report explains how a few US retailers account for the vast majority of over USD 4.7 trillion in aggregate payment volume. Many of these retailers have already adopted the technology necessary to accept mobile payments from Apple Pay and similar apps, or plan to. It only takes a handful of these large retailers to drive an explosion in mobile payment volume and that is what BI Intelligence think is going to happen.
The report also forecasts that US mobile payment volume will grow at a five-year compound annual growth rate of 172%. Volume will rise to USD 818 billion by 2019, or just under 15% of total US payment volume.
The study also highlights that Apple Pay is showing early signs of success, as payments made via Apple Pay accounted for between 0.1%-1.6% of transactions at five top retailers in the month following the launch of the feature.
The research also states that CurrentC isnt dead on arrival. Despite a firestorm of bad press for the yet-to-be launched mobile wallet from the MCX retail consortium, which includes Wal-Mart, there is still a chance it could have some success. CurrentC retailers account for over USD 1 trillion in annual volume and BI Intelligence think these retailers are going to push it aggressively to their customers. Even with mediocre results, that adds up to a lot of payment volume in aggregate, the report adds.
The report also points out that Android mobile wallets are benefiting from Apple Pay. Multiple sources confirm that Google Wallet saw a jump in payment volume following the launch of Apple Pay. Softcard, recently acquired by Google, also struck a number of new deals that were likely a result of retailers attempting to give their customers an Android-based alternative to Apple Pay.
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