Mobile Pay Adoption Reaches Over 50% Among Eligible Users for the First Time

Date – 09-Aug-2024

Auriemma Group’s Mobile Pay Tracker Reveals Majority Adoption of Apple Pay, Google Wallet, and Samsung Wallet for the First Time

Auriemma Group’s Mobile Pay Tracker, which has been monitoring mobile and digital payments since 2016, recently revealed that for the first time, a majority of eligible device holders are using Apple Pay, Google Wallet, or Samsung Wallet. This milestone marks a significant shift in the mobile payments landscape, where competition has intensified as both established and emerging players vie for market dominance.

Mobile payments have seen rapid growth over the past five years, with adoption now reaching 54% among credit cardholders eligible for Mobile Pay. This represents a 20-percentage point increase since Q1-2019. Additionally, brand-specific usage has reached new heights, with Apple Pay at 67%, Google Wallet at 54%, and Samsung Wallet at 35% in Q1-2024.

As mobile payment adoption continues to climb, the future of digital transactions seems increasingly geared toward widespread usage and integration across various platforms.

Mobile payments clearly extend well beyond the offerings of Apple, Google, and Samsung,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “However, our research consistently underscores the importance of being first to market and achieving broad acceptance, as the more established players continue to see higher usage and interest than their competitors.”

While merchant-branded mobile payments and apps like Walmart Pay, Target Wallet, and the Dunkin’ app hold a significant place within the mobile payments ecosystem, they still lag behind device-centric options in terms of ubiquity. For instance, Walmart Pay, which launched soon after the major device-backed services, sees much lower usage among eligible users (29%). Even when shopping at Walmart, a majority of Mobile Pay users (54%) prefer using Apple Pay, Google Wallet, or Samsung Wallet over traditional payment cards (26%) or Walmart Pay (20%).

“Super apps, which have been immensely popular in markets like China with platforms such as WeChat, could also emerge as significant competitors in the mobile payments space,” O’Connor adds. “These apps serve as all-in-one solutions, bundling messaging, payments, and shopping in a single platform. While their presence in the U.S. is still nascent, their growing popularity could push traditional Mobile Pay providers to adopt some of their features to stay competitive.”

Despite the rise of super apps, Mobile Pay continues to dominate, with awareness and usage of super apps still in their early stages. However, interest is growing—nearly 39% of those who have never used a super app express a desire to try one. Although super apps are garnering attention, Mobile Pay remains the preferred payment method, with 38% of users favoring it over other options like super apps (26%). Moving forward, Mobile Pay providers may increasingly integrate features of super apps to enhance customer experiences and address evolving payment needs.

As mobile payments evolve, the competition between established device-centric services and emerging super apps will shape the future landscape. With growing interest in super apps and continued expansion in Mobile Pay usage, consumers are seeking more convenient, integrated solutions. Providers will face the challenge of innovating and adapting to meet these shifting preferences while maintaining strong user engagement and satisfaction.

This Auriemma Group study was conducted online in the U.S. by an independent field service provider on behalf of Auriemma Group in April 2024 among 2,168 adult mobile pay-eligible credit cardholders. The sample size allows for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. Respondents were not informed of the research’s purpose or the criteria for qualifying.

For 40 years, Auriemma has empowered clients with authoritative data and actionable insights. Our team includes recognized experts in operational effectiveness, consumer research, co-brand partnerships, and corporate finance. We provide business intelligence and advisory services that equip clients with the data, expertise, and tools necessary to navigate an increasingly complex environment and maximize performance. Auriemma serves the consumer financial services ecosystem from offices in New York City and London.