Smartphones are Driving Point of Sale Transactions
According to our recent mobile payments survey, 29.0% of US smartphone users ages 18 and older, or 63 million people, will use a mobile phone to pay for a purchase at a physical point of sale this year.
Up roughly 60% from 2017, these consumers will pay for nearly $80 billion worth of goods and services via their smartphone at a physical point of sale. Key contributors to the growth are increases in adoption by older generations, and growth in average spend per transaction.
While 46% of all mobile payment transactions are attributed to Millennials, the adoption rate has remained flat year over year. Conversely, the number of Boomers+ that use mobile payments has increased 40% year over year. These folks have traditionally been slower to embrace all types of mobile payments but are starting to come around. In addition, consumers are starting to buy higher priced items.
Prior waves of the study indicated that consumers were using their phones at the point of sale to pay for coffee, fast food and other low-value, high-frequency purchases. While this is still the case, the data indicates as consumers get use to purchasing items this way they are starting to transition to higher priced items. Year over year there has been a 26% increase in the number of consumers that spend on average between $20-$60 per transaction.
As the adoption continues and consumers get more comfortable with the experience of mobile payments we expect to see these numbers continue to climb.