Press Release: The mobile wallet market is rife with opportunity. Valued at close to USD 1 trillion in 2016, Infiniti Research predicts that it will exceed USD 4 trillion by 2021. Finding the best way to take advantage of this market, however, can be challenging.
Apple Pay has been growing since it launched two years ago. It is supported by numerous banks and credit unions in the US, and is gradually spreading into the rest of the world. According to a recent report from consumer spending analytics firm TXN, the number of mobile transactions using Apple Pay rose by 50% from December 2015 to December 2016.
While this may look promising on the surface, it is less impressive than one might expect. Apple Pay has been growing steadily since launch, but its penetration is still quite low. In the app store, for example, it is used for only 1%–1.5% of transactions. On average, physical stores see less than 0.8% usage of the payment method. And while the number of transactions is rising, the frequency at which consumers use Apple Pay has actually fallen. A common reason for this is that people simply don’t remember that it’s an option.
Apple and other organizations are working to change this, however. Square, a mobile payment company, has partnered with Apple to promote Apple Pay, waiving processing fees for the first USD 12,000 worth of transactions made using Apple’s payment app. Merchants can also request a free marketing kit and training materials. This initiative will incentivize vendors to promote Apple’s services, increasing awareness and helping combat the issue of consumers not realizing the option is available.
This is not the first initiative from these two companies. Square recently carried out a campaign in Portland to educate merchants and consumers about the payment service, and the result was that contactless payments such as Apple Pay tripled. This demonstrates just how important awareness and education are, as well as business partnerships with compatible companies. While adoption of mobile payments has been somewhat lackluster, a concentrated effort to increase it met with considerable success.
Although awareness of Apple Pay’s existence is widespread, many people who already have the ability to use it have no idea how it works. It is essential to identify gaps like these, determine which demographics and regions might need a heavier marketing focus, and ensure that the widest possible audience has a solid understanding of your offerings.
Market intelligence can pinpoint places where a campaign might be failing, and bring to light opportunities for partnerships that can strengthen both companies involved. It can also point out why numbers might not be as positive as they look — a 50% growth rate becomes less impressive once you know usage is increasing from 1% to 1.5%. Market intelligence is vital in a sector such as mobile payment services, where there is immense potential for growth.
Based on your particular service, Infiniti Research experts will provide a comprehensive look at the market, including multiple metrics on which to evaluate the environment and the performance of your offering. They will also determine possible partners and competitors, including those companies’ current performance, strengths, and weakness. It can be difficult to identify opportunities or select a strategic partner that will be a strong fit for a business venture, but Infiniti can provide you with a detailed analysis that will give you all the information you need to make informed business decisions.
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About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies.
With 13 years of experience and offices across three continents, Infiniti Research has been instrumental in providing a complete range of competitive intelligence, strategy, and research services for over 550 companies across the globe.