This Festive Season, Mobile Wallets, especially Apple Pay, will have a Field Day

November 24, 2014     By : Ray

This holiday season will witness higher usage of mobile wallets for in-store payments. There will be a huge percentage growth over last year as it grows from a smaller base. There will be tremendous boost in the web based payments as well, where huge jump is expected in terms of absolute numbers. Apple Pay is off to a good start covering 50% of in-store payments at McDonald’s and over 150,000 Whole Foods transactions in the first three weeks since its inception. By 2019, more than $142 billion per year is expected to be spent using mobile payment services, according to industry sources. We came across certain surveys which clearly highlight the rapid growth rate that mobile wallets could witness, starting this holiday season.

As per a survey conducted by Retale, Apple Pay users are three times more likely to spend $250 using the service this holiday season. Around 5% of U.S. retailers are already accepting Apple Pay. The survey was conducted on 1000 U.S. adults over a period of a week. Survey results highlight that 51% consider PayPal to be the most popular in-store mobile payment option. Apple Pay is the choice of 10% of those surveyed while Google Wallet is that of 8% of those surveyed. 12% of the Retale survey group are of the view that they would be comfortable spending over $250 by using mobile. Retale claims that 56% of U.S. adults are interested in using mobile to pay for a gift or other item in store this holiday season.

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The 2014 Holiday Mobile Payments Survey, conducted by Stratos Inc., reveals that one out of three consumers plans to use mobile payment services like Apple Pay or Google Wallet to shop in-store this holiday season. As per the survey, 17% of smartphone users would spend more because of the new payment options. As for locations, 66% of smartphone users plan to use a mobile wallet at department stores. The survey also reveals why mobile payments would be appealing to consumers:

  • 37% cited that they won’t have to worry about theft of payment cards.
  • 32% cited that they can track payments more efficiently.

In another holiday shopping survey from the National Retail Federation, 27.4% of shoppers feel comfortable with making in-store mobile payments. Considering particular segments, 41.1% of 25-34 year olds are comfortable using mobile to pay at the register. This survey had polled 7547 consumers over a period of one week in October. The survey also explored further mobile inclination for payments. It revealed that 47.4% of respondents will research products while 33% will make purchases.

Ray

Ray has keen interest in the area of devices, OS and wireless technologies. He is a Mobile Technology enthusiast and believes that Mobility is going to completely change the way we do Payments and Commerce. He wishes to share this belief with the world by providing such content through LetsTalkPayments. Ray has done his engineering as well as MBA.