Javelin Strategy & Research Forecasts Mobile Proximity Payments to Reach $54 Billion by 2019
Today, mobile proximity payments make up a mere 1% of all retail transactions, compared to total online payments at 9%. Mobile proximity payments are payments made by consumers at the physical point of sale using a mobile device, usually a smartphone. While the mobile proximity payments market may be in its infancy, the potential for growth and acceleration is exponential. Javelin Strategy & Research released Mobile Proximity Payments Forecast 2015, which 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.
“Power has shifted to the consumers with smartphones, and vendors must adapt and respond in new ways”
Not all smartphone operating systems are equal when it comes to proximity purchasing behaviors. It’s no secret that iOS leads in purchasing, and mobile proximity payments are no exception. Almost 1 in 6 iOS smartphone owners made a proximity purchase within a 30-day period, nearly double the rate of Android smartphone owners. iOS smartphone owners made a median $20 purchase compared to $15 for Android owners.
“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.”
By 2019, it is projected that mobile proximity payments will total $54 billion. This 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.
Related Javelin Research
- Mobile Wallets Analysis and Strategy: How the Game Changes With Apple Pay
- 2015 Gang of Five: Apple Pay vs. Android Pay vs. Samsung Pay vs. PayPal ‘Pay’?
- New Moneyhawks: Highly Profitable and Engaged Customers Defining the Future of Banking
About Javelin Strategy & Research
Javelin Strategy & Research (@JavelinStrategy) provides strategic insights into customer transactions, increasing sustainable profits for financial institutions, government, payments companies, merchants and other technology providers. Javelin’s independent insights result from a uniquely rigorous three-dimensional research process that assesses customers, providers, and the transactions ecosystem.