Public-relations and digital marketing agency Walker Sands released its third-annual Future of Retail Study, which surveyed more than 1,400 U.S. consumers and revealed the ways users engage with mobile payment applications. The study found that Android Pay topped the list of mobile payment applications, with 19 percent of respondents saying they have used Android Pay to purchase a product in a store.
Android Pay was followed by retailer mobile apps at 12 percent of users and Apple Pay at 11 percent of users. The report showed that the number of Android mobile payment users held steady from last year, while the number of Apple Pay users increased from 4 percent last year.
When asked about their preferred payment methods for different kinds of purchases, mobile payments ranked low with respondents overall. However, mobile payments were shown to be the preferred payment method for some users in a few categories, including household bills (6 percent of users), rent/mortgage (5 percent) and paying others for goods and services (3 percent).
The survey also analyzed the use of peer-to-peer payment apps and found that one-third of respondents overall had used a P2P app in the past year. Breaking this down into age groups, 44 percent of respondents aged 18 through 25 and 38 percent of respondents aged 26 through 35 had used one of these apps in the past year. By comparison, only 17 percent of respondents aged 46 through 60 had used a P2P app in the past year.
The survey also found that younger users are more likely to have used any mobile payment apps. Specifically, 64 percent of respondents aged 18 through 25 said they had made a mobile purchase in the past year, compared with 25 percent of respondents aged 61 and older.
Overall, the report showed that privacy and security concerns are the main reasons consumers are hesitant to use mobile payment applications.
The report reads:
With U.S. mobile payment transactions expected in triple in 2016 to $27 billion, payment options such as Apple Pay could eventually force more widespread changes in consumer behavior. For now, though, consumers remain hesitant to give up the payments methods they’ve been using for years to embrace unproven technology.
Led by millennials, however, mobile payments are rising in popularity for point-of-sale and P2P payments. Because many of these younger consumers are more likely to blame retailers for the slow adoption rate, it’s important for companies to accept as many payment forms as possible.
Walker Sands’ complete study is available here.