Report: Mobile Wallets Falling Flat on Repeat Usage
Although consumers continue to adopt and use mobile wallets such as Apple Pay, Android Pay and Samsung Pay, new evidence indicates that such wallets are largely failing to drive repeat usage. A report released Aug. 17 by Javelin Strategy and Research found that mean mobile wallet usage has declined 20 percent over the past three years—to 3.0 purchases a month in 2015 from 3.7 in 2013. The reason for the drop is quite simple, according to Javelin: mobile wallet providers “are failing to show consumers clear reasons to reach for their phones instead of their credit or debit cards,” the firm said in a news release.
Consumer adoption of mobile wallets, including those offered by merchants, banks and the “Pays,” has nearly doubled over the same period, from 11 percent of smartphone owners in 2013, to 21 percent in 2015. Even though providers are attracting adoption and first-time use, they’re failing to compel repeat usage, causing overall monthly usage rates to decline. To drive repeat use, providers should stop positioning mobile wallets as replacements for plastic payment cards, Javelin said. Instead, they should focus on enhancing the purchasing experience in ways that cards cannot.
Another recent report noting sluggish mobile wallet usage cited sales offers, coupons, loyalty integration and order delivery updates as opportunities that have gone largely untapped by mobile wallets. P2P money transfer also has been hailed by many as an especially promising mobile wallet application.