In 2016, 45% of consumers were open to replacing plastic with an app
One year later, only 28% of consumers were open to switching
2014-2016, 40% were open to swapping apps for prepaid cards (like coffee)
One year later, only 30% would replace prepaid card in fast food, coffee, etc.
Its a huge drop in interest, and likely reflects consumer sentiment that mobile wallets and apps for the sake of mobile is not enough. Mobile payment solutions work best when integrated into the overall user experience – specifically surrounding the ‘convenience’ and ‘immediacy’ desires. Mercator Advisory Group refers to this as, “lifestyle commerce,” and the current areas of opportunity include Mobile Order-Pay, Self Checkout, On-Demand Services, and E-Commerce. Future and emerging opportunities include: IoT & Machine Learning, Connected Car, Smart Speakers, & Smart Homes
Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – Business Credit Cards and B2B Payments: Opportunity to Improve Market Penetration