As more and more smartphone owners use their devices to pay for products online, mobile payment services such as Apple Pay, Android Pay and Samsung Pay are predicted to grow rapidly. Now, eMarketer has released findings that show US mobile payment transaction will grow 210% in 2016.
US mobile payments forecast to climb 201% by 2016
This year, mPayments are to reach $8.71bn in the US as users spend an average $376 per year through mobile transactions. Next year, total transactions are predicted to total $27.05bn, with the average user spending almost double at $721.47 annually.
Bryan Yeager, Analyst, eMarketer, says:
“Several factors will drive substantial mobile payments growth in the US. Mobile wallets like Apple Pay, Android Pay and Samsung Pay will become a standard feature on new smartphones. Also, more merchants will adopt point-of-sale systems that can accept mobile payments, and incentives like promotions and loyalty programs will be integrated to attract new users.”
eMarketer research also took a closer look at demographics and found that 25-34 year-olds are leading mobile payments usage, followed by 18-24 year-olds. By 2017, 37% of the younger generations will have adopted the technology. Change is being driven by consumers willing to make medium-priced purchases ($20-$100) on mobile instead of just those below $20 as security concerns are being ruled out and convenience becomes of greater importance.
Mobile payments are being led by the younger generations
“Younger consumers generally have fewer apprehensions when it comes to experimenting with and eventually adopting new technologies. That’s certainly true for mobile payments, where security concerns are more pronounced among older consumers. Ultimately, mobile wallets will need to have a strong track record of security to attract more users across all demographics long-term.”