Science & Technology

Over 100M Americans to use in-store remittance apps: report

With the pandemic, customers opted for cashless remittance services, in a bid to avoid the spread of the virus

in-store

Over 100M Americans to use in-store remittance apps: report. Source: pexels.com

The use of mobile payment solutions has increased since the onset of the coronavirus pandemic, according to Emarketer.com.

In 2021, the use of in-store remittance apps will hit a significant milestone of 101.2 million users in America above the age of 14. This comes after a 20% annual growth in 2020. The usage will even outpace all smartphones by 2025.

Apple Pay is the leading participant. So far, the platform has 43.9 million users. The report estimates it will enlist 14.4 million users between 2020 and 2025, surpassing its competitors.

Many consumers tried mobile wallets at point-of-sale for the first time last year to avoid using paper currency and credit and debit cards. The largest amounts of new users were Gen Z and millennials. We project that there will be around 6.5 million new mobile wallet users per year from 2021 to 2025, of which more than 4 million will be Gen Zers. Millennials will continue accounting for around four in 10 mobile wallet users, although that share will shrink
Oscar Orozco,  eMarketer forecasting analyst 

This will improve its lead over Starbucks, which is second among the leading players. By the end of the projection period, Google Pay, which is third in place will increase its users by 10.2 million. Samsung Pay is however stagnant with only 2 million new users between the same period.

The use of mobile wallets has increased significantly. The average spend per user is estimated to increase to $2,439.68 in 2021. This is a 23.6% increase, with the pace likely to exceed $3,000 by 2023.

PaySpace Magazine anticipates that contactless payments are likely to account for at least 50% of total wallet spend in five years. The coronacrisis has made an irreversible impact on the payments industry by shifting customers’ preferences from cash towards e-payments. This way, we suggest you take a look at the top 7 books for everyone who wants to understand payments.

We’ve reported that Stripe is now available in the United Arab Emirates.

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