Jan. 31, 2019
A Juniper Research report warns that the window for mobile pay services, like Apple Pay and Google Pay, is closing fast, as just 14 percent of U.S. consumers use OEM-pay services, defined as payment services provided by smartphone vendors.
The report, which examines U.S. and U.K., consumer attitudes on contactless payment, mobile banking and mobile commerce, states future growth of mobile wallet services is threatened by increasing deployment of contactless credit and debit cards from banks like JP Morgan Chase, which recently announced plans to issue contactless cards.
"Over the longer term, we would expect that if the U.S. embraces contactless cards, that mobile-based contactless payment usage would probably slow, but not fade away entirely," study author James Moar told Mobile Payments Today via email. "In the U.K., a market with a well established contactless card ecosystem, we are still seeing growth for these platforms."
He said the use of these platforms would be situational, as almost none of the U.K. survey respondents use OEM pay services exclusively.
"Mobile payment services will not be able to match the pure convenience of contactless cards, and so providers need to be aware of the areas where they are used in preference to contactless card payments, and focus on providing benefits in those situations," he said. "OEM pay needs to be ready to share the contactless ecosystem, rather than control it."
The U.S. portion of the report is based on survey questions for 513 U.S. consumers during the month of December.
Topics: Contactless / NFC, Mobile Banking, Mobile/Digital Wallet, Mobile Payments, Trends / Statistics
Companies: Juniper Research, Google Wallet, Apple, JP Morgan Chase Bank N.A.
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