Report: Interest in Mobile High, Adoption Remains Low
Mar. 6, 2014
Mobile wallets continue to intrigue U.S. consumers and U.S. consumers continue not to use them, according to a new report from Boston-based consultancy Yankee Group. In addition to overall mobile adoption trends (only 16 percent of consumers used a mobile wallet to make a payment during the previous quarter), the company also looked at what currently available solutions might be well positioned to succeed if and when mobile payments take hold like they have been predicted to do for years. Yankee Group found that PayPal is used four times more than its next closest competitor (Google Wallet) to make mobile purchases. Fifteen percent of consumers have made a purchase using PayPal mobile in the past month, the report said.
“The harsh reality is that despite billions in investment across the ecosystem, adoption of such mobile payment technologies has been far from illustrious,” said Jordan McKee, Yankee Group Analyst and author of the report. “Just 16 percent of mobile device owners have used their phone to make an in-store payment in the past three months. More concerning, of those using mobile wallets, 73 percent are doing so fewer than five times per month. Clearly, the way we pay for goods and services is not slated to change anytime soon. But although cash and cards may enjoy dominance for some time, with fully two-thirds of consumers remaining interested, it’s important to recognize that the mobile wallet is far more of a latent opportunity than a pipe dream.”