According to a Javelin research, while mobile wallet dollar volume and total new users both continue to rise, merchant and bank mobile wallets turn out to be more valuable than Apple Pay, Android Pay, Samsung Pay because the latter are failing to show consumers clear reasons to reach for their phones instead of their credit or debit cards.
Monthly consumer adoption of mobile wallets (including those offered by merchants, card issuers, and the “Pays”) has nearly doubled since 2013 from 11% to 21%. However, monthly frequency of wallet purchases per person has declined from 3.7 transactions per month in 2013 to 3 transactions in 2015, a 20% decline in purchases per person. The lack of clear consumer value has constrained adoption of the Pays for in-store purchases, with just 3% of consumers having used Samsung Pay in the past month in 2016, 5% using Android Pay, and 8% turning to Apple Pay.
Javelin’s report recommends strategies to drive repeat purchasing behaviour by creating value all along the purchase journey, not just at the point of payment.
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