Payments, Mobile Wallet, Mobile Payments

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Payments

• American consumers make 81% of purchases in-person vs. 19% online; of the total payments made in 2022: credit card (31%), Debit (29%), and Cash (18%); Source: FRBSF 

Payment Preferences

• Payment Preferences in America: Source: FRBSF 

  • American consumers make 81% of purchases in-person vs. 19% online

  • of the total payments made in 2022: credit card (31%), Debit (29%), and Cash (18%)

Cash

• cash constitutes more than 80% of the world’s transactions; in America, it accounts for around 50%; Source: Mastercard 

Mobile Wallet

• Mobile Wallet users in America: 85.1% of Gen Z individuals made an in-store or online payment using their phone (2023); Source: eMarketer

• top mobile payment apps/systems used by U.S. adults: PayPal, Venmo, Zelle, and Apple Pay; Source: eMarketer

• Big Three Mobile Peer-to-Peer (P2P) Payment Platforms in America (by users); Source: eMarketer

  • Zelle: 96.6 million

    • popular for higher value payments (backed by bank)

  • Venmo: 76.4 million

    • popular among young consumers for cost-splitting

  • Cash App: 54.9 million

    • popular among crypto users

Mobile Payments, Digital Payments, Contactless Payments

• annual global non-cash transactions are expected to pass the 1 trillion milestone by 2024; both globally and in the U.S., the payments ecosystem is evolving: 2 related trends – the slow death of cash and the fast rise of digital payments are transforming how consumers, businesses, governments, and even criminals move money; this major transformation is being propelled by several factors, including increased usage of digital wallets, more small vendors adapting to accept credit cards, and the explosive growth of mobile commerce; Source: Business Insider 

• contactless: contactless transactions are ubiquitous in many parts of the world; Americans, however, have been slow to adopt them; in 2018, just 3% of cards in use in the U.S. were contactless versus around 64% in the UK and up to 96% in South Korea; Source: Forbes 

• mobile payment penetration: as a percentage of smartphone users, 29% of Americans have adopted mobile payments; a tepid figure relative to Denmark at 41% and India at 37%; America’s fierce economic rival (China) has a whooping 81% of smartphone users that have adopted mobile payments (801 million people vs. America’s 69 million people); Source: Visual Capitalist 

• in 2019, digital payments reached a staggering $4.1 trillion in payment volume globally; smart devices an a booming ecommerce industry were driving its growth; there was an estimated 2.3 billion global mobile wallet users in 2018; Singapore has the highest number of cashless payments per individual (averaging 831 cashless payments annually); Source: Visual Capitalist