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Mobile Payments

Research highlights the next wave of mobile wallet adoption

Wednesday 11 October 2017 | 09:28 AM CET

Cardless ATMs, peer to peer payment apps and store loyalty programs have positioned mobile wallets to provide value to both consumers and merchants, shows a recent research.

New research from Forrester, commissioned by JPMorgan Chase, which takes a revealing look at the state of mobile payments and some of the keys to the technology’s biggest hurdles. The research profiles early adopters of mobile wallets into three groups: Power Users, Light Users and Non-Users.

The findings include:

Power Users of today come from diverse backgrounds, but tend to be younger and more affluent:

  • 79% own an above average number of tech devices (4+);

  • 84% like trying new apps on their phone;

  • 65% say they are the first to try (or follow closely) banking/money management tech online.

What’s motivating current users, and how that can influence Non-Users:

  • The research uncovered what motivates more frequent users of mobile wallets: the top three motivations for Power Users are Order ahead and pay (57%), self-Service pay at the table (54%) and the ability to use coupons and redeem rewards directly from the digital wallet (50%).

Both merchants and consumers expect digital wallet adoption to grow in the near future:

  • 41% of consumers say they’re likely to sign up for a digital wallet in the next 12 months;

  • 67% of merchants believe that five years from now, the majority of transactions will be through digital wallets;

  • 55% of merchants say they are likely to update their POS or e-commerce systems to offer the latest digital wallet solutions in the next 12 months.

JPMorgan Chase commissioned Forrester Consulting to continue work on a multiyear project that seeks to better understand the emerging role of digital payments and provision merchants with the knowledge and perspective to take advantage of the new payments landscape. Conducted in the summer of 2017, the study consisted of a quantitative survey of 1,500 US consumers ages 18-plus who go online at least weekly, as well as a survey of 800 professionals across a variety of industries who are responsible for their company’s payment decisions.