In-store mobile contactless services used by only 14% of online US consumers
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 in-store purchases, according to a new survey from Juniper Research. The survey covered over 1,000 smartphone users across the US and the 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.
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.
SEE ALSO: How to set up & use Apple Pay