When Apple Pay launched last year, the financial industry took
note. On the consumer side of the business, we're quite used to
Apple's larger-than-life launches and equally impressive market
performance immediately following. But six months after Apple Pay's
launch, the scenario might best be described as… over baked? Not
While our new Lightspeed Financial Services Group study shows an
uptick in frequency of Apple Pay use for in-store purchases,
security concerns and a general lack of interest have slowed
adoption of Apple Pay and other e-wallet platforms.
Lightspeed FSG has been tracking the e-wallet industry since
Apple Pay's launch last year. Among current Apple Pay users, 17%
said in the new July 2015 study that they use Apple Pay more than
10 times a month for in-store purchases, up from just 7% in
At the same time, there has been dramatically little growth in
the percent of top bank customers adopting Apple Pay since its
launch last fall - and even as Samsung Pay prepares to launch this
Fall, interest in adopting mobile payments has stalled.
Only 25% of consumers who currently own a smartphone say they
are interested in paying for things at stores using their mobile
phone, slightly below the figure seen last November (27%).
Even as smartphone adoption proliferates, the biggest barriers
to e-wallets today are persistent concerns about security and -
with respect to Apple Pay - a large segment of consumers who see no
need to acquire an iPhone to make payments.
Significant numbers of consumers say in the survey they are
nervous about security or have not yet been convinced that an
e-wallet will make their lives easier. Even among today's
smartphone generation (consumers under age 35), only 27% say they
are confident in the security of mobile payments.
So, how should banks, retailers, and agencies evaluate Apple
Pay, Google Wallet and Samsung? Our study also helps by
providing answers to some critical questions, including: Which
incentives will be most effective in helping banks and card issuers
motivate e-wallet users to switch their default card in Google
Wallet or Apple Pay? And, what are the top factors motivating
consumers likely to adopt mobile payments over the next year?
Source: Lightspeed GMI