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CoverStory
By the numbers with Apple Pay. And Apple Pay continues to enjoy the
highest adoption rate, with 33 percent of iPhone 6 owners
Following are recent stats on consumer shopping and mobile reporting they use it, according to ACG's research. Among
payment habits: Samsung phone owners, the firm found 23 percent use
Samsung Pay.
• 33 percent of Americans made purchases at physical stores
using their smartphones in 2015, according to the Federal Google's Android Pay, a recent entry into the mix, aims
Reserve. TSYS put the number at 13 percent. to be a credible competitor, as well, although adoption
of Google's mobile wallet app lags far behind Apple Pay
• Consumers using Samsung Pay, on average, spend more and Samsung Pay. Google recently formed partnerships
each week using their mobiles than do Apple Pay users ($82 with both Mastercard and Visa Inc. which, it hopes, will
versus $75). boost usage. Under those agreements online merchants
who already accept Visa Checkout and Masterpass digital
• 28 percent of U.S. consumers are unaware of mobile wallets will also be able to accept Google's Android
payments, the Pew Charitable Trusts reported. Pay beginning early in 2017. Mastercard has a similar
agreement with Android Pay.
• 72 percent of Americans who make mobile payments are
millennials or generation Xers. (Pew) As Berry pointed out, however, many mobile wallet apps
are not universally available, which may skew usage data.
• The three major gift categories consumers are eyeing for "Only the newest and most expensive models of phones
the 2016 holiday season are clothing (50 percent of those support mobile payment, so owners tend to be affluent,"
surveyed), gift cards (48 percent), and electronics (36 she said.
percent), Deloitte found.
Soon, in addition to Apple Pay, Samsung Pay, Android
• eMarketer predicted NFC mobile payments will more than Pay and other U.S.-based mobile payments schemes,
double in the United States in 2017 to $62.49 billion, and U.S. merchants will also have links to Alipay, a popular
exceed $314 billion by 2020. mobile wallet offering from China's ecommerce giant
Alibaba Group Holding Ltd. China may lag behind the
• Mobile payments will account for 55.5 percent of all United States in terms of credit card users – about 100
ecommerce sales in China in 2016, and are expected to million cardholders among a population of 1.3 billion.
account for 68 percent of that total by 2020. (eMarketer) By all accounts, however, it has the highest rate of mobile
payments adoption in the world.
Lead for Retail Banking at NTT Data Consulting Inc.
An international survey of 2,000 consumers by Oxford Sales data from China's annual Singles Day (a November
Economics for NTT and Ingenico Group found more than holiday that stands in contrast to Valentine's Day) shows
half believe mobile wallets are less secure than cash; 75 1.05 billion transactions went through the Alipay mobile
percent said guarantees against financial fraud would app that day, a 48 percent increase over last year. At
encourage them to use mobile wallets. the peak of Singles Day, Alipay was handling 120,000
transactions a second, the company said.
Marianne Berry, Managing Director of Payment Insights
at Auriemma Consulting Group, said security concerns Alipay, which claims 400 million users, has been seeking
are not universal, and ACG's research revealed that most U.S. partners in an effort to support Chinese tourists who
users understand mobile is a safer way to pay. "They like travel here. In October 2016, it struck deals with First Data
the idea that the retailers don't see their actual card data," and Verifone Inc. to achieve that end. Those deals make
she said. Non-users tend to be unsure of mobile payments it possible for Chinese tourists to use Alipay wherever
security, however. First Data's Clover Mini POS terminal and Verifone's e355
mPOS devices are installed.
"Mobile payments offer a much higher level of security
than does the mag-stripe card," Morea stated, adding that Alipay said it is only interested in better serving Chinese
people tend to be more attached to their mobiles than their tourists, and it will target high-end merchants. Many
wallets; they also tend to realize more quickly when their observers aren't buying that, however; they expect Alipay
mobiles go missing, he noted. "With the move toward to enter the United States in a big way. "It's going to shake
digitization and tokenization, we're in a much more secure things up," King said.
place than the industry has been over the last 30 years," he
said. So which mobile payment options are most likely to hold
Proliferating mobile pay options sway in the market, long term? "We don't think about it in
terms of a sole winner," Morea said. "We think there's a
As has been the case with many innovations, Apple greater likelihood that a set of solutions will emerge that
was the first player out of the mobile payments gate, consumers will come to prefer and adopt over time."
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