Samsung Pay, Samsung’s phone-based mobile wallet, celebrated its one-year anniversary this week.
The wallet is now available in seven countries and has over 440 issuing bank partners, according to the firm. Samsung released several key statistics about the wallet one year in:
- Samsung Pay has processed nearly 100 million transactions across all markets in its first year.
- In addition to credit and debit cards, the wallet has over 4 million registered “membership” cards in the US and South Korea. That illustrates the value that additional use cases, like loyalty support, could have in onboarding customers to wallets.
- In South Korea specifically, the wallet has processed over 2 trillion won ($1.78 billion) in transaction volume. That’s double the 1 trillion won ($891 million) it had processed as of this May, according to ZDNet, which points to continued acceleration in wallet adoption. Over 25% of transactions have been made online, which shows the utility of online and in-app transactions in driving mobile payment volume and adoption.
Samsung Pay is well-positioned to expand and continue its growth trajectory as mobile payments become more commonplace. The continued ramp up in South Korea, which was the service’s first market, could be a positive indicator for other markets. Unlike other mobile wallets, which only work at newer NFC-enabled point-of-sale (POS) terminals, Samsung Pay is accepted at almost any POS terminal that accepts magnetic stripe cards in most of its markets.
That could make the service easy to use — just 19% of US Samsung Pay users had trouble at the POS, relative to 31% of Apple Pay users, according to Auriemma Consulting Group — which might encourage users to return to the service and form habits around it, spurring further transaction and volume growth.
Mobile payments are becoming more popular, but they still face some high barriers, such as consumers’ continued loyalty to traditional payment methods and fragmented acceptance among merchants. But as loyalty programs are integrated and more consumers rely on their mobile wallets for other features like in-app payments, adoption and usage will surge over the next few years.
Evan Bakker, research analyst for BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on mobile payments that forecasts the growth of in-store mobile payments in the U.S., analyzes the performance of major mobile wallets like Apple Pay, Android Pay, and Samsung Pay, and addresses the barriers holding mobile payments back as well as the benefits that will propel adoption.
Here are some key takeaways from the report:
- In our latest US in-store mobile payments forecast, we find that volume will reach $75 billion this year. We expect volume to pick up significantly by 2020, reaching $503 billion. This reflects a compound annual growth rate (CAGR) of 80% between 2015 and 2020.
- Consumer interest is the primary barrier to mobile payments adoption. Surveys indicate that the issue is less the mobile wallet itself and more that people remain loyal to traditional payment methods and show little enthusiasm for picking up new habits.
- Integrated loyalty programs and other add-on features will be key to mobile wallets taking off. Consumers are showing interest in wallets with integrated loyalty programs. Other potential add-ons, like in-app, in-browser, and P2P payments, will also start fueling adoption. This strategy has been proved successful in China with platforms like WeChat and Alipay.
In full, the report:
- Forecasts the growth of US in-store mobile payments volume and users through 2020.
- Measures mobile wallet user engagement by forecasting mobile payments’ share of their annual retail spending.
- Reviews the performance of major mobile wallets like Apple Pay and Samsung Pay.
- Addresses the key barriers that are preventing mobile in-store payments from taking off.
- Identifies the growth drivers that will ultimately carve a path for mainstream adoption.
To get your copy of this invaluable guide, choose one of these options:
- Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
- Purchase the report and download it immediately from our research store. >> BUY THE REPORT
The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of how mobile payments are rapidly evolving.