Auriemma Consulting Group Conducts Parallel Study of Mobile Pay Usage in the UK and the US
LONDON, Jan. 11, 2018 /PRNewswire/ -- In both the UK and the US, a growing ecosystem of mobile pay providers hope to become consumers' go-to payment method at checkout. But the future of mobile payments appears more positive in the UK where contactless payment technology has made familiarity with tapping at the point of sale more prominent. Auriemma Consulting Group recently conducted a parallel study amongst cardholders in both the UK and US markets, aimed at learning about mobile payment adoption, satisfaction and how comfort with contactless technology could impact mobile payments moving forward.
A small but notable proportion of credit cardholders ('cardholders') in both geographies have adopted mobile payments. While UK cardholders are slightly more likely than their US counterparts to have used Apple Pay (12% vs. 9%) and Visa Checkout (9% vs. 6%) within the past month, other options, such as PayPal In-Store Checkout (5% each) and Android Pay (4% each) show similar usage patterns. Although usage metrics are low, satisfaction with each technology is extremely high.
Over 90% of users in both geographies say they are satisfied with their mobile payment app. However, while it may be true that satisfied users are more likely to continue using than dissatisfied ones, user satisfaction alone does nothing to introduce non-users to the technology. UK consumers have a slight advantage in this area, given their introduction to contactless payment technology has familiarised them with tapping at checkout.
"UK consumers were introduced to contactless payments in 2007," says Jaclyn Holmes, the Director of Auriemma's Payment Insights. "Their increased comfort with this technology, in the decade since its inception, makes payment behaviour at the point of sale less of a barrier for mobile pay adoption. If anything, paying with a tap has become more natural for this population than their US counterparts, who only recently began the move from swipe to dip."
While exposure to contactless payments may increase comfort with mobile wallets, the shift from brick-and-mortar to online shopping creates an opportunity for mobile payments to grow. Most UK and US cardholders have made an online purchase on their smartphone, but a notable minority (40% and 31%) have not. And there is a link between comfort with making an online purchase via a smartphone and usage of mobile wallets more generally. Notable proportions of UK and US cardholders who have made online smartphone purchases have never tried mobile wallets (43% and 33%, respectively). This is in stark comparison to their less smartphone-friendly counterparts, who are much less likely to have used a mobile wallet (5% and 7%).
"Cardholders who are more accustomed to shopping on their smartphone are more likely to pay with their smartphone in-store, especially in the UK," says Holmes. "The US may have had the advantage of earlier exposure to mobile wallets, but the UK's history with contactless has made the locale ripe for adopting a variety of mobile payment options. Increased familiarity with contactless payment technology and comfort with the smartphone as a payment device will be necessary to encourage the growth of mobile payments."
Survey Methodology
These studies were conducted online within the UK and US by an independent field service provider on behalf of Auriemma. The UK study (Cardbeat® UK) was fielded in August 2017 among 500 adult credit cardholders and the US study (The Payments Report) was fielded June/July 2017 among 800 debit cardholders, of which 567 were also credit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying. The average interview length was 20 minutes.
About Auriemma Consulting Group
Auriemma is a boutique management consulting firm with specialised focus on the Payments and Lending space. We deliver actionable solutions and insights that add value to our clients' business activities across a broad set of industry topics and disciplines. Founded in 1984, Auriemma has grown from a one-man shop to a nearly 50-person firm with offices in New York and London. For more information, visit Auriemma's website at www.acg.net or contact Jaclyn Holmes at +44 (0) 207.629.0075.
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