Although the mobile wallet ecosystem is maturing, in-store mobile payments haven't yet taken off. Consumer disinterest, coupled with delays in fully implementing the necessary infrastructure, are preventing mobile wallets from achieving mainstream adoption.
BI Intelligence
While neither merchants nor consumers have yet fully embraced mobile payments, mobile wallets offer benefits to all stakeholders: enhanced security features, faster checkout, and loyalty integration. Each of these is a plus for customers and merchants alike, and will eventually convince both parties to embrace the technology.
Our new estimate finds that US in-store mobile payment volume will reach $75 billion this year. Between 2015-2020, we expect volume to rise by a compound annual growth rate (CAGR) of 80% to bring mobile payments volume to $503 billion by 2020.
And we expect to see a significant uptick in the number of US consumers making mobile payments. We forecast the number of in-store mobile payment users to rise at a 40% five-year CAGR to reach 150 million by the end of 2020. This represents 56% of the consumer population during that year.
Mobile payments still face some high barriers, like consumers' continued loyalty to traditional payment methods and fragmented acceptance among merchants. But as loyalty programs are integrated and more consumers rely on their mobile wallets for other features like in-app payments, adoption and usage will surge over the next few years.
In BI Intelligence's 2016 Mobile Payments Report, we forecast the growth of in-store mobile payments in the US, analyze the performance of major mobile wallets like Apple Pay, Android Pay, and Samsung Pay, and address the barriers holding mobile payments back as well as the benefits that will propel adoption.
Here are some key takeaways from the report:
In full, the report:
Companies mentioned in the report include: Apple, Samsung, Visa, MasterCard, Square, MCX, Walmart, Best Buy, Walgreens, Verifone, Alibaba.
Interested in getting the full report? Here are two ways to access it:
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