4 charts

4 charts about mobile payment growth, or the lack thereof

  • Only 14 percent of Android/Samsung users have ever used Android or Samsung Pay
  • "Although mobile payments are growing, customers still prefer to use their credit cards over mobile wallets."
close

Email a Friend

4 charts about mobile payment growth, or the lack thereof

As companies pour cash into developing and advertising their mobile payment products, the future of mobile payments is still up for grabs. Currently, there are three mobile wallets emerging as industry leaders: Samsung Pay, Apple Pay, and Android Pay. Although watching three technology giants battling it out for mobile payment supremacy may be intriguing, it’s important to keep everything in perspective and understand how far along we are in the mobile wallet lifecycle.

Here are four charts that tell the story of where mobile payments are today.

Mobile operating systems go hand-in-hand with market share, as Apple’s and Android’s mobile wallets can only grow to the limit of their respective users.

chartoftheday_4431_smartphone_operating_system_market_share_n

Android is far ahead of iOS in terms of market share, but it also has Samsung Pay competing on the same operating system. There are reports that Samsung is releasing an iOS app soon, and expect Apple to surely welcome them with open arms and make no attempts to restrict their app.

Now that OS market share has been broken down, we need to evaluate mobile payments transaction volumes from a few years ago and see if anything has changed since then.

globalcreditanddebitcardvolume

According to this chart, mobile payments comprised only three percent of the worldwide credit and debit card transaction volume in 2013, totaling $207 billion. $200 billion is nothing to roll your eyes at, but it’s nowhere near ecommerce ($691 billion) or retail transaction volume ($5.9 trillion) of the same year.

The obvious knock on this data is that it’s from 2013, and mobile payments have only grown in the past few years. However, when looking at consumer behavior, the opposite may be true.

1214friday

Black Friday is the biggest shopping day of the year, and unfortunately for Apple, Samsung, and Google, users chose to go with plastic and paper over mobile wallets. Only a small fraction of iPhone and Android users used their respective mobile payment wallets when shopping on Black Friday in 2015. Most interesting may be that both companies saw market shares that were lower than the three percent threshold shown in the 2013 study.

The issues regarding the growth of Apple, Samsung and Android Pay become more apparent when looking at how many users have ever used the mobile wallets featured on their phones.

apple-pay-vs-samsung-android-pay-2016-1

According to 2015 data from Trustev, only 20.7 percent of iPhone users and only 14 percent of Android/Samsung users have ever used Apple, Android, or Samsung Pay. Of the users who have used these mobile wallets, a vast majority only use them once a week.

All the data tells us something we already know: Although mobile payments are growing, customers still prefer to use their credit cards over mobile wallets. Until the day that consumers behavior changes, mobile wallets will still be the little brother to cash and plastic.

Photo credit: whiteafrican via VisualHunt.com / CC BY

0 comments on “4 charts about mobile payment growth, or the lack thereof”

4 charts

4 charts on why banks need embedded finance to be relevant in the future

  • Banks have an opportunity to rethink their transformation strategies.
  • FIs can consider turning invisible by powering ecosystems instead of going direct to customers.
Zachary Miller | November 13, 2020
4 charts

4 charts on the Lufax IPO

  • Chinese digital lender and wealth management firm Lufax is preparing to float shares in the U.S.
  • The company continues to grow and innovate as financial regulation continues to change.
Zoe Murphy | October 23, 2020
4 charts, Member Exclusive

4 charts on the impact COVID-19 has had on consumer fintech adoption

  • With branches closed, Americans needed the lifeline that fintech provided during the crisis.
  • The number of fintech apps and the frequency people use them have both increased.
Zoe Murphy | September 15, 2020
4 charts, Member Exclusive

4 charts on retail banks moving to platform-based business models in 2020

  • Study finds banks with platform-based business models more likely to survive new digital demands from customers
  • Retail banks struggle with shedding legacy systems
Rivka Abramson | June 22, 2020
4 charts

How credit card issuers can revive their relevance in 4 charts

  • Credit card profitability is dropping due to rewards expenses and changing consumer behavior.
  • New research illustrates a few ways for issuers to remain relevant in their card holders' lives.
Zack Miller | March 03, 2020
More Articles