US study reveals increased use and awareness of Apple Pay, Android Pay and Samsung Pay

Nearly nine in ten US consumers with Apple Pay compatible devices (89%) are now aware of the mobile payment service, research released by First Annapolis Consulting reveals. 64% of those owning Android Pay compatible devices have heard of the service, while 54% of Samsung users show awareness of Samsung Pay.

first-annapolis-squarelogo200 31% have used Apple Pay to make a purchase compared to 20% in December 2015, with 7% now using it once a week or more. 9% of those with Android Pay compatible devices have used Google’s mobile payment service to buy something, with 2% doing so once a week or more. 13% have used Samsung Pay to make a purchase, while 4% use it once or more during the same week.

74% of the total 1,528 US consumers surveyed in June were aware of Apple Pay, followed by a 45% awareness rate for Android Pay and 30% for Samsung Pay.

The third edition of First Annapolis’ semi-annual study of mobile banking & payments also reveals that 73% of those using the services reported no issues or challenges with the enrollment process.

However, 8% indicated that the process took too long/had too many steps, while 8% experienced trouble loading a card, with issues being more common among Android Pay and Samsung Pay than those using Apple Pay. Apple Pay and Android Pay users have loaded an average of 1.9 cards into their wallet, while Samsung Pay users average 1.5 cards.

Users reported an average satisfaction rating of 4.4 for each of the three mobile payment services. 61% of Android Pay customers are very satisfied with the service, compared to 59% of Samsung Pay users and 52% of those signed up to Apple Pay.

“Adoption and use of the pays is increasing and satisfaction levels among users are consistently high but significant runway remains,” First Annapolis says. “Real and perceived merchant acceptance is the most common barrier to increasing frequency of use.

“Younger consumers are most likely to use a pay service and their habits will drive migration over time but older demographics shouldn’t be ignored. Marketing and education beyond millennials to encourage enrollment will help drive mainstream use.”

The research also reveals that 74% of Americans have made at least one mobile payment in the last 12 months — including online, in-app and in-store — representing an increase from 40% in May last year.

23% had made a mobile payment in-store as of June 2016, up from 20% in December 2015 and 16% in May 2015. More than half of the respondents (51%) now have a mobile wallet app on their phone, with only 7% of users reported using a mobile wallet through their bank. 27% of those surveyed who do not have a mobile wallet are interested in the idea of having one.

When asked ‘Who provides the mobile wallet app on your phone?’ Apple (36%) and PayPal (21%) were the most frequently cited wallet providers, followed by Google with 15%. Banks, however, topped the list of the respondents’ most preferred provider of mobile wallets with 45%.

Adoption of mobile payments is strong among millennials, with 82% of those under 35 having made a mobile payment. 37% of millennials have made a mobile P2P payment and 34% have enrolled to use a mobile payment service. This compares to 25% of those aged 35-44 and 14% of those aged 44-54.

64% cited security concerns as their main reason for not using mobile payments, followed by not having the need to use the service (42%), privacy concerns (41%), preferring the convenience of non-mobile payment methods (18%), lack of trust in mobile payment providers (16%), needing more documentation (10%), a fear that it would lead to an increase in spending (6%) and unreliable technology (6%).

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