Table of Contents
Executive Summary
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- Top takeaways
- Issuers are going to have to wait for full US mobile adoption
- Safety message can’t wipe out focus on security
- Brand pivots and partnerships place more attention on mobile, but will it last?
- Nearly half of US adults think paying via mobile is a hassle – merchants and payment providers need to work on consumer perception
- Market overview
- Impact of COVID-19 on mobile payments
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- Figure 1: Short-, medium- and longer-term impact of COVID-19 on mobile payments, November 2020
- Opportunities and Challenges
- Re-emergence
- Recovery
The Market – Key Takeaways
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- Sales of smartphones expected to slow due to COVID-19
- Smartphone ownership nears 85%
Market Factors
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- Sales of smartphones expected to slow due to COVID-19
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- Figure 2: Total unit sales and forecast of smartphones (millions), 2015-25
- Figure 3: Total unit sales and forecast of smartphones (millions), 2015-25
- Smartphone ownership continues to rise
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- Figure 4: Mobile phone ownership and type of phone used, 2012-2019
- Apple remains dominant smartphone brand, Samsung hits plateau
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- Figure 5: Brand of smartphone owned, 2013-2019
- Most recent regulations for mobile payments are from 2019
- Economic indicators deeply affect credit card industry
Companies and Brands – Key Takeaways
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- Contactless gets more attention due to COVID – but will it last?
- Partnerships reign, regardless of industry
Companies and Brands
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- Uber Eats app allows consumers to pay while in restaurant
- PayPal to launch its own installment loan – Pay in 4
- Samsung Pay launches multi-account pay card
- Google launches Google Plex with Citi partnership
- United Mileage Plus pivots to embrace consumers’ lack of air travel
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- Figure 6: United MileagePlus contactless email, June 2020
- Figure 7: United MileagePlus mobile pay email, June 2020
The Consumer – Key Takeaways
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- In-app, in-store purchases prove most popular for mobile pay
- Concerns about security limit mobile payment usage
- COVID-19 has increased mobile payment usage
Preferred Payment Method
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- Credit card remains the most popular payment method
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- Figure 8: Preferred payment method, July 2020
- Figure 9: Preferred payment method, by rank, July 2020
- Even younger adults prefer more traditional payment methods – debit continues to outrank credit for those 18-34
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- Figure 10: Preferred payment method, by age, July 2020
Mobile Payment System Usage
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- PayPal remains most popular mobile payment platform
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- Figure 11: Mobile payment usage, July 2020
- Young adults have their clear favorites, but middle-aged use a variety of apps
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- Figure 12: Mobile payment usage, by age, July 2020
Using Mobile Pay for Purchases
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- In-app, in-store purchases prove most popular for mobile pay
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- Figure 13: Purchasing through mobile payment system, July 2020
- Most affluent are least willing to use mobile
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- Figure 14: Purchasing through mobile payment system, by household income, July 2020
Converting Non-users
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- Concerns about security limit mobile payment usage
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- Figure 15: Reasons to use a mobile wallet, July 2020
- What will it take for true mobile payments conversion?
Mobile Payment Behaviors
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- Payment providers need to increase willingness to store card information on phone
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- Figure 16: Payment method storage, by generation, July 2020
- Mobile payments are not a preferred payment method
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- Figure 17: Preferences for using smartphone for payments, by age, July 2020
- Payments through social media have yet to catch on, but youngest adults are most willing
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- Figure 18: Sending money to friends via social media, by age and gender, July 2020
Attitudes toward Mobile Payments
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- COVID-19 has increased mobile payment usage
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- Figure 19: Changes in mobile payment behavior due to COVID-19, by generation, July 2020
- Nearly half of adults think paying via mobile is “a hassle”
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- Figure 20: Attitudes toward mobile wallets, July 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
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