The window of opportunity in the US for mobile payment providers like Apple Pay and Google Pay is closing fast. Despite high levels of support from retailers, only 14% of US respondents currently use OEM-Pay (payment services provided by smartphone vendors) for instore purchases, according to a new survey from Juniper Research. The survey covered over 1,000 smartphone users across the US and the UK.
For more insights, download infographics from the Consumer Attitudes to Mobile Banking, Contactless Payments & mCommerce Survey 2018 US and UK.
Future growth is likely to be threatened by increasing deployments of contactless cards in the US, with Chase becoming the latest major bank to announce contactless Visa rollouts.
“Time is running out for OEM-Pay providers to establish a dominant position in the US,” remarked research author James Moar. “Many of mobile payment’s benefits, like increased transaction speed, are not exclusive to smartphones, and our survey shows that the majority of users who have not adopted OEM-Pay are more interested in services like contactless cards than mobile-based payments.”
High Street Fears Confirmed: 40% of Consumers Shop Less InStore due to eCommerce
Juniper’s survey also confirms that online shopping is having a detrimental effect on physical retailers; 40% of survey respondents in both the US and the UK report that they shop less in stores due to using online and mobile commerce. In addition, the trend of ‘showrooming’, looking at physical goods in stores and then checking prices online was reported by 24% of UK respondents and 13% of US respondents.
However, while mCommerce is a zero-sum game in the UK, with few users increasing overall retail spending, it may open up new retail opportunities in the US. 30% of respondents report shopping more overall due to their use of mCommerce, not merely shopping more online.
Additionally, the survey shows that continued reliance on browser-based online purchasing is perpetuating non-biometric authentication methods, like passwords or PINs, presenting an ongoing security problem.
Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports and industry commentary.