SAN FRANCISCO—A new study projects that mobile payments at the point of sale will reach $54 billion by 2019, and shows that as of now, usage at point of sale using iOS (Apple) devices is double that of Android.
Javelin Strategy & Research’s Mobile Proximity Payments Forecast 2015 points out that today mobile POS payments make up only 1% of all retail transactions, compared to total online payments at 9%. The report identifies first adopters of mobile proximity payments, their attitudes toward using mobile device in the shopping experience, and estimates the market over the next five years.
“While the mobile proximity payments market may be in its infancy, the potential for growth and acceleration is exponential,” stated Javelin in a release.
Backed by the launch of Apple Pay, almost one in six iOS smartphone owners made a proximity purchase within a 30-day period, nearly double the rate of Android smartphone owners, the study shows. iOS smartphone owners made a median $20 purchase compared to $15 for Android owners.
Of all smartphone users, the study shows that in a 30-day period, 9% made a proximity payment for an average price of $18.82.
“Power has shifted to the consumers with smartphones, and vendors must adapt and respond in new ways,” said Daniel Van Dyke, mobile research specialist at Javelin Strategy & Research. “The merchant’s own app can be used to offset competitors’ shopping apps, by using targeted rewards, discounts, and loyalty points.”
The report includes three years of historical data and a five-year forecast. It also includes two online surveys in 2014 of over 6,400 U.S. adult consumers to assess mobile behaviors and attitudes.
