Mobile wallets have become a part of today’s culture, but are they as popular as they appear to be? According to a new study from Juniper Research, only 14% of U.S. consumers use mobile wallets for in-store purchases.
Juniper’s research author James Moar says, “Many of mobile payment’s benefits, like increased transaction speed, are not exclusive to smartphones” and that most users are “more interested in services like contactless cards than mobile-based payments.”
Retailers have been adapting to mobile wallets since America’s transition to chip payment cards, but they are now adapting to contactless cards as well. For instance, Target recently announced they will accept Apple Pay transactions in their stores, as well as Mastercard contactless cards. Chase is now transitioning their credit and debit cards to contactless cards, which should be completed by the end of 2019.
Nearly three quarters of the world’s internet users are projected to have mobile-only internet access by 2025. That may fuel growth in mobile wallets, but Juniper’s findings suggest it will mostly fuel online shopping. In both the U.S. and UK, 40% of respondents said they shop less in stores because of an increase in online purchases. Moreover, 30% of U.S. respondents said they shopped more in general due to the convenience mobile commerce.