Increased technology has brought mobile payment methods to the forefront of many businesses and consumers, as evidenced by a 50% drop in cash use in the United States from 2010 to 2020.*
The U.S. isn’t the only nation to see a steep decline in cash payments. Sweden and the Netherlands have both also seen a drastic dip in cash use, with less than 20% of transactions involving traditional paper money.
The COVID-19 pandemic is another factor in the increased usage of mobile payments. In 2020, sales at businesses capable of accepting Apple Pay increased $6 trillion from the previous year.*
In this post, we’ll take a closer look at various mobile payment statistics in the United States and around the globe. To see the statistics compiled visually, jump to the infographic.
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Coca-cola was the first company to implement mobile payments in 1997*. This technology has since evolved into what we know today, with mobile payment options such as Apple Pay and Venmo. Other fintech apps include:
While each of these apps work differently, they all serve one purpose: to enable cashless, touchless payments. There are also obvious differences in fan favorites, as some of these apps are far above others when it comes to number of users.
The increase of mobile payments is not likely to slow down soon, as the market is expected to reach $6.7 trillion by 2023.*
Mobile payment types by user:
Despite the rapid growth the industry is experiencing, mobile payments are still not consumers’ first choice of payment. Americans still make five or six more payments each month using a credit or debit card than they do with a mobile wallet.* As the market continues to grow and more businesses allow mobile payments, these numbers are likely to change.
The term “mobile wallet” can easily be confused with specific payment methods like Apple Pay or Google Pay. However, a mobile wallet only stores your financial information, such as credit or debit cards and certain IDs, similar to a physical wallet.
If you’re considering how or why you need to level up your mobile wallet marketing, browse the mobile payment statistics below.
Developed by the Japanese auto industry in 1994, QR codes have been heavily present in many parts of Asia for years.* It wasn’t until the COVID-19 pandemic hit that the U.S. began utilizing this technology more.
With over 10 billion Apple Pay transactions in 2019* and the same platform holding 92% of all mobile wallet debit transactions in 2020,* it’s safe to say Apple has been one of the top trendsetters in the mobile payment industry for years.
The first purchase of a real-life item using Cryptocurrency was in 2010. Laszlo Hanyecz paid 10,000 Bitcoin for two pizzas, which was worth roughly $41 at the time. Cryptocurrency has since increased in value — with 10,000 Bitcoin now worth over $80 million* — and many businesses now accepting it as payment.
The United States isn’t the only country to have seen an increase in mobile payments. In fact, in 2019, the U.S. wasn’t even one of the countries with the most mobile payment users. At the time, it was China, Denmark, India, South Korea, and Sweden.*
Possibly the number one contributor to the growth of the mobile payment market is the shift in consumer behavior, partially attested to COVID-19. However, other factors — such as the increased convenience, security, and cleanliness — also play a role in the rise of digital payments.
Only about 24% of consumers prefer to use mobile payments specifically for the security they provide.* While many mobile payment companies are working to make digital payments more secure and protected, 38% of consumers feel that mobile payment security is only subpar.*
Understanding these mobile payment statistics will help you better understand your target customer. Use them to your advantage, especially when creating the perfect mobile checkout flow. If you’re still unsure what type of mobile payment your audience uses the most, utilize a marketing analytics platform and test a few out for yourself.
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