The window of opportunity in the US for mobile payment providers like Apple Pay and Google Pay is closing fast according to a new Juniper Research survey. Despite high levels of support from retailers, only 14% of respondents currently use payment services provided by smartphone vendors for in-store purchases, with banks poised to scale up contactless card launches.
- 40% of the respondents in both the US and the UK report that they shop less in stores, preferring 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.
- While m-commerce in the UK hardly shifts the needle in terms of 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 m-commerce, not merely shopping more online.
Time is running out for OEM-Pay providers to establish a dominant position in the US. Many of mobile payment’s benefits, like increased transaction speed, are not exclusive to smartphones, and our survey shows that the majority of users who have not adopted OEM-Pay are more interested in services like contactless cards than mobile-based payments.