Table of Contents
Executive Summary
-
- The issues
- Fewer Millennials have credit cards
-
- Figure 1: Credit card ownership, by generation, July 2015
- Mobile payment is growing, but usage is still low
- Person-to-person payments also growing, but usage is still low
-
- Figure 2: Synovus email ad for P2P services, 2015
- The opportunities
- Incentives will help drive mobile payment usage
-
- Figure 3: Would begin using mobile payment system if had incentives, July 2015
-
- Figure 4: Would increase use of mobile payment system if had incentive, July 2015
-
- Figure 5: Discover online bill pay email ad, 2015
- What it means
The Market – What You Need to Know
-
- Consumers are paying off debt
- Mobile payments are coming of age
- Interest in prepaid cards is growing
- An improving economy
- Smartphone sales
- Interest in wearables
Market Size and Forecast
-
- Credit card balances
-
- Figure 6: Credit card balance, Q1 2003-Q1 2015
- Prepaid cards
Market Factors
-
- Strengthening economy
-
- Figure 7: Percentage change in GDP, Q4 2011-Q2 2015
- Consumer confidence
-
- Figure 8: University of Michigan Index of Consumer Sentiment January 2005-July 2015
- Growth of smartphones
-
- Figure 9: Total US volume sales and forecast of mobile phones, 2009-19
- Wearables are coming!
-
- Figure 10: Interest in wearables, by gender and age, and Hispanic origin, July 2015
- CHAID Analysis
-
- Figure 11: Interest in wearables – CHAID tree output – July 2015
Key Players – What You Need to Know
-
- Most want cash rewards
- Millennials don’t like credit cards
- Mobile payments are not yet mainstream
What’s Working?
-
- Cash back rewards are most popular
-
- Figure 12: Credit card reward preferences, by generation, July 2015
-
- Figure 13: Share of offers, Q1 2013-Q1 2015
- Figure 14: Discover It card mailing, 2015
- Prepaid cards are gaining popularity in different areas
What’s Struggling?
-
- Millennials don’t like credit cards
-
- Figure 15: Credit card ownership, by generation, July 2015
-
- Figure 16: Use of debit cards and prepaid cards, by generation, July 2015
-
- Figure 17: American Express and Bank of America reward cards ads, 2015
- Mobile payments are still struggling for mainstream usage
-
- Figure 18: Methods of payment, by type of transaction, July 2015
- How to increase usage?
-
- Figure 19: Reasons would begin to use/use mobile payments more, by current use of mobile payments, July 2015
- The future of mobile payment systems
What’s Next?
-
- New payment systems
- EMV Cards
-
- Figure 20: EMV card
- Wearables
The Consumer – What You Need to Know
-
- Young people are a challenge for credit card issuers
- Credit cards and rewards
- Use of mobile payment systems
- Consumers who use mobile payment systems like them
- How to increase usage of mobile payment systems
- Debit and prepaid cards are popular debt management tools
- Banks versus billers online bill pay
Who Owns Cards?
-
- Young people don’t like credit cards
-
- Figure 21: Credit card ownership, by generation, July 2015
- Debit card ownership is down
-
- Figure 22: Debit card ownership, by generation, July 2015
- Prepaid card ownership highest among mobile payment users
-
- Figure 23: Prepaid card ownership, by various demographic segments, July 2015
How People Pay
-
- Small transactions
-
- Figure 24: Method of paying for small, everyday transactions, July 2015
- Medium transactions
-
- Figure 25: Method of paying for medium-priced items such as clothing in person, July 2015
- Large transactions
-
- Figure 26: Method of paying for large-ticket items such as a television or furniture in person, July 2015
- Online transactions
-
- Figure 27: Method of paying for any online purchase, July 2015
- Paying bills
-
- Figure 28: Method of paying bills, July 2015
-
- Figure 29: Capital City Bank and First Merit Bank online pay incentive email ads, 2015
- Money owed family and friends
-
- Figure 30: Method of paying money owed friends and family, July 2015
- The future of P2P
- Debit cards are a popular payment method
Changes in Payment Methods
Attitudes toward Credit Cards
-
- Using cards for rewards
-
- Figure 31: Use credit cards to get rewards, by demographics, July 2015
- Cash back is king
-
- Figure 32: Reward card preference, by generation, July 2015
- Purchases affect choice of card
-
- Figure 33: Different cards owned, by household income, July 2015
Who Uses Mobile Payment Systems
-
- Millennials, Hispanics, urban dwellers, and parents
-
- Figure 34: Use of mobile payment system, by various demographic groups, July 2015
- Mobile payments are used more by those with higher incomes
-
- Figure 35: Use of mobile payment system, by household income, July 2015
- Apple Pay? Google Wallet? Other?
-
- Figure 36: Use of specific mobile payment system, by demographic segments, July 2015
- Satisfaction with mobile payment systems is high
-
- Figure 37: Satisfaction with mobile payment systems, by demographic groups, July 2015
- Apple users are more satisfied than Google users
-
- Figure 38: Customer satisfaction, by mobile payment provider, July 2015
- What do Apple Pay and Google Wallet users want?
-
- Figure 39: Reasons mobile payment system user would increase use, by mobile payment system, July 2015
- Who is most likely to use mobile payment systems?
-
- Figure 40: Key Driver Analysis – Who uses mobile payment systems, July 2015
Encouraging Consumers to Use Mobile Payment Systems
-
- Incentives, incentives, incentives...and security
-
- Figure 41: Reasons consumers would begin using mobile payment system, by generation, July 2015
- Availability at more stores would help, too
-
- Figure 42: Reasons Millennials would increase usage of mobile payment systems, July 2015
- Better communication is necessary
-
- Figure 43: Mobile payments are too complicated, by demographics, July 2015
- Still resistance to mobile payments
Attitudes about Payment Methods
-
- Cards help consumers stay out of debt
-
- Figure 44: Using cards to stay out of debt, by demographics, July 2015
- Is it necessary to carry cash?
Method of Bill Paying
-
- Online bill pay
-
- Figure 45: Online bill pay preferences, by generation, July 2015
- More pay bills with tablets than with phones
-
- Figure 46: Use of mobile payment services, by generation, July 2015
Appendix – Data Sources and Abbreviations
-
- Data sources
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – CHAID Methodology
-
- Methodology
-
- Figure 47: Interest in wearables – CHAID – Table output, July 2015
Appendix – Key Driver Analysis Methodology
Appendix – The Consumer
-
-
- Figure 48: Use of mobile payment systems, July 2015
-
- Figure 49: Paying for small, everyday transactions, by household income, July 2015
-
- Figure 50: Paying for medium-priced items such as clothing in person, by generation, race, July 2015
-
- Figure 51: Paying for large-ticket items such as a television or furniture in person, by generation, race, July 2015
-
- Figure 52: Paying for any online purchase, by generation, July 2015
-
- Figure 53: Mobile payment system usage, by age, household income, July 2015
-
Back to top