The total value of mobile payment transactions in the US will grow 210% in 2016 and nearly one in five smartphone users will make a mobile payment in a store next year, eMarketer’s latest proximity mobile payments forecast predicts.
“In 2015, mobile payments will total $8.71 billion in the US, with users spending an average of nearly $376 annually using their mobile phone as a payment method,” eMarketer says. “By 2016, total mobile payment transactions will reach $27.05 billion, with users spending an average of $721.47 annually.”
37.5 million people in the US will make a proximity mobile payment in 2016, up 61.8% from 23.2 million people in 2015, eMarketer forecasts. “In 2015, 17.5% of 25- to 34-year-olds will use a mobile payment method, vs. just 3.5% of those 65 and older. By 2017, 37.0% of the younger age group will have adopted the technology, compared with just 6.3% of the 65 and over group.”
“Several factors will drive substantial mobile payments growth in the US. Mobile wallets like Apple Pay, Android Pay and Samsung Pay will become a standard feature on new smartphones,” says eMarketer analyst Bryan Yeager. “Also, more merchants will adopt point-of-sale systems that can accept mobile payments, and incentives like promotions and loyalty programs will be integrated to attract new users.”
An increase in average transaction values will also drive growth, eMarketer adds. The analysts expect that “consumers will move beyond primarily buying low-priced goods, below $20, with mobile payments to a wider array of price points. In 2015, medium-priced purchases, ranging from $20 to $100, will comprise 45.5% of all mobile payment transactions in 2015, growing to 63.9% by 2018. Low-priced transactions will decline in proportion throughout the forecast period.”