Digital Transactions Authoritative, insightful and timely information for payments professionals
Ever since mobile payments first captured the public imagination four years ago with the launch of Apple Inc.’s Apple Pay, experts have debated why usage of the iOS and Android wallets has fallen short of the original, lofty expectations. Some speculate that usage would rise markedly if the mobile wallets functioned more like their leather counterparts, only with the twist of digital convenience. And now evidence is emerging to support that claim.
Last month, Apple said students at three universities could load their student IDs into Apple Pay, allowing them to use the credential for such routine tasks as going to the gym, opening dorm rooms, or checking out library materials. Also in October, Ant Financial Services Group’s Alipay wallet started supporting marriage certificates in Jiangsu province in China, easing the way for users to apply for a mortgage, transfer property, or open a startup company.
These moves could pay off handsomely for Apple and Alipay, according to research results released Wednesday by Auriemma Consulting Group. In the latest edition of the firm’s quarterly Mobile Pay Tracker, more than one-third of mobile-payment users Auriemma surveyed said they’d be interested in using a mobile wallet to store ID cards or government documents.
The New York City-based consulting firm canvassed 1,518 people who had both a major credit card and an Apple or Android phone capable of mobile payments. Overall, 31% of these consumers had ever used mobile payments, the firm found (the breakdown among brands is 35% for Apple Pay, 28% for Google Pay, and 23% for Samsung Pay).
Auriemma’s analysts say the convenience of storing digital versions of documents people might otherwise stuff into a leather wallet or store in a safe could pump up mobile-wallet usage. “We’ve been doing this survey since Apple Pay launched, and usage among those eligible to use hasn’t seen any spikes,” Jaclyn Holmes, director of the firm’s payment insights practice, tells Digital Transactions News. “Without additional functionality built in, the sentiment we’re seeing is, ‘we see no use for [mobile payments].’”
Still, peer-to-peer payments on the major wallets appear to be gaining popularity. Apple Pay Cash, in particular, has been catching on fast since its launch 11 months ago, with 42% of Apple Pay users saying they had used the P2P service in the third quarter, compared to just 16% in the first quarter, according to the Tracker. Some 36% of Google Pay users said they had used Google Pay Send, up from 25% in the first quarter.
The P2P apps also engender higher spending. For the two services combined, users had sent $162 on average in the past week. By contrast, the average spend in store was $145; on a Web site, $142; and in-app, $133. Ironically, Alphabet Inc. said in July it plans to phase out Google Pay Send in favor of a new P2P service.
