Tag: mobile payments trends

Mobile commerce hasn’t reached the same level as smartphone use

Two recent studies has shown that device users still aren’t ready to shop and pay with their gadgets.

Although smartphones are rapidly making their way into the hands of virtually every American, nowadays, mobile commerce and payments are falling way behind the many other uses that people have for their gadgets.

This, according to the results of two different surveys that looked into the use of mobile devices.

According to research from Informate Mobile Intelligence, the average American smartphone user currently spends about 4.7 hours on his or her device, every day. That represents about thirty percent of their waking time. That research was conducted in December 2014, and shoed that device users in the U.S. are greatly likely to have access to applications for mobile commerce and payments. The reach for shopping apps, at that time, was 59 percent, and for mobile payments apps, it was 49 percent.

That said, despite the reach, mobile commerce and payments aren’t appealing to American consumers as they could.

Mobile Commerce - Man using smartphone A second survey, this one by Placeable, which involved the participation of one thousand consumers in the United States, said that while the mobile apps may be there, people simply aren’t using them. That survey determined that 42 percent of smartphone owners had never made a purchase on their device. Moreover, only 9 percent of those who had access to mobile payments said that they actually used them.

The survey pointed out that this also doesn’t necessarily mean that shoppers aren’t using their mobile devices as a part of their purchasing process. The research indicated that 6 out of every 10 consumers will use their smartphones at some point during the shopping process when they are shopping for a product online or even in-store. However, the actual purchase is not being made over that device. That is occurring over PC or at the store’s checkout counter.

While other research has indicated that mobile security could be in the way of the use of these options over smartphones, Placeable suggested that this may not entirely be the case. Nearly 70 percent of participants in the survey said that they were willing to trust shopping over mobile commerce or making smartphone based payments. The reason that they are not using them is that they don’t see the need.

Mobile payments now make up 16 percent of Starbucks purchases

The most successful smartphone transaction service is continuing to rise in popularity.

As much as Apple Pay may be holding the spotlight, at the moment, when it comes to mobile payments services, on the side of actual successes that have been proving themselves over time, Starbucks has remained at the very top of the list.

An earnings call from Howard Schultz, Starbucks CEO, revealed considerable data and insight.

Schultz explained that in the financial quarter that came to an end on December 28, 2014, Starbucks had more than 13 million mobile payments app users throughout the United States. This shows a rise of 1 million people from the previous quarter, when there had been just over 12 million users of that mobile application. Overall, this brought about a considerable user base for the smartphone based transactions in its store locations.

Schultz reported that 16 percent of the total transactions processed by the company were through mobile payments.

starbucks - mobile paymentsComparatively, Apple Pay had been reporting early victories in the use of that mobile wallet at Whole Foods, where 1 percent of the sales had been processed using smartphones. Clearly, Starbucks has been able to not only create a success out of its service, but it has managed to do so in a solid way that is generating a rapid, steady increase in the number of people who are actually using it. They have managed to avoid becoming a flash in the pan gimmick and have provided their customers with a transaction method that they are happy to use on a regular basis.

In his own words, Schultz stated that “We continue to see broad customer acceptance and adoption of our mobile payment technologies,” adding that “Today in the U.S. alone, over 13 million customers were actively using our mobile apps. And we are now averaging more than 7 million mobile transactions in our stores each week—representing 16% of total tender. That’s more than any other bricks-and-mortar retailer in the marketplace.”

Starbucks isn’t planning to simply stay put with the current offerings of its mobile payments app. It now intends to roll out a smartphone based ordering service, which is already underway as a part of a trial in Portland, Oregon.