Digital wallets are revolutionizing the way we pay for goods and services. After a steep spike in use throughout Covid-19, mobile payments, or ‘m-payments' are now officially the most common payment method in the US, overtaking cash, bank transfers, and even physical credit and debit cards. Here are some of the latest and most compelling mobile payment statistics to prove the point.
The popularity of m-pay is a no brainer. By storing payment information and allowing consumers to leave their wallet at home, mobile payments are far more convenient than traditional methods. With most POS systems coming with in-built card readers, cashing in on digital payments couldn't be easier for businesses, either.
From m-payment usage figures to security data, we've rounded up the top mobile payment statistics to help businesses understand their impact on the payment landscape in 2024. We also look at the future of mobile payments, and why its becoming increasingly necessary for businesses to embrace the technology.
In this guide:
- Key Mobile Payment Statistics
- Mobile Payments: Explained
- Mobile Payment App Usage Statistics
- Mobile Payment Market Statistics
- Mobile Payment Methods For Hospitality Businesses
- The Future of Mobile Payments
- Mobile Payment Statistics FAQs
Mobile Payments Explained
Mobile payments are a type of digital transaction that take place through smartphones, or other mobile devices.
Commonly abbreviated to ‘m-payments', mobile payments are typically completed using digital wallets like Google Pay and Apple Pay. These wallets store payment information electronically, allowing users to pay for goods and services in a tap, without using physical cards.
Mobile payments are widely regarded as faster, more convenient, and more secure than alternative payment types, justifying the method's wild success in recent years. The barrier to entry for accepting mobile payments is low too – all businesses need is a standard POS set-up or a simple contactless payment reader.
Mobile Payment App Usage Statistics
Here are some statistics around mobile payment usage trends in 2023, both in the US and globally.
1. Mobile payments will only rise in coming years
Mobile payments are predicted to make up 79% of all digital transactions by 2025, compared to 71% of digital transactions in 2021. (Juniper Research)
2. Mobile payments exceed 1 billion users
Experts predicted there would be 1.31 billion global mobile payments in 2023, thanks to the popularity of NFC-enabled smartphones. (Statista)
3. China has the most m-payment users
China has the highest usage of mobile payments, with 81.5% of smartphone users embracing the technology, compared to 46% of South Koreans, and 43% of Americans. (eMarketer)
4. Use surges throughout Covid-19
Mobile payments increased during the pandemic, with 43% of Americans using the transaction type in 2021, compared to only 29% in 2019. (eMarketer)
5. Payment method of choice in the US
More than half (53%) of Americans claim they use digital wallets more often than traditional payment methods like cash or physical cards. (Forbes Advisor)
6. More popular among younger users
Mobile payments are more popular with younger consumers, with 62% of Gen Zers and 53% of millennials using mobile wallets, compared to 21% of baby boomers. (Morning Consult)
7. Consumers and willing to increase use
39% of American consumers claim they would use mobile payments more frequently if it were accommodated by more stores and apps.(NFC World)
Mobile Payment Market Statistics
The digital payment market is booming, and the m-payment sector is no exception. Here are some figures detailing its wild growth.
8. M-payment market is growing by 36.2%
The mobile payment market is currently worth $67.5 billion in 2023, and is projected to reach $587.52 billion by 2030 at a CAGR rate of 36.2%. (Grand View Research)
9. US transaction value exceeds $1.7 trillion
Mobile payments transaction volume reached $1.7 billion in 2021, a 27% increase as compared to 2020 (FintechFutures)
10. Apple Pay dominates US market
Outside of China, Apple Pay has the largest transaction volume of any mobile payment service, with 55.8 million consumers expected to use the platform in 2023. (Oberlo)
11. AliPay is global top-dog
Chinese-based AliPay is the largest mobile payments platform in the world, serving 1.3 billion global users in 2022 and making up 40% of total m-payments globally. (Merchant Machine)
12. Transaction size slows in China
Despite China boasting the largest mobile payment market globally by far, the total transaction value of mobile payments decreased to 500 trillion yuan in 2022. (Statista)
Digital Payments Security Statistics
Despite the popularity of digital payments, many doubts remain about their security. Here are some digital payments security statistics to be aware of in 2024.
13. Digital payment users have doubts
Security is a high concern among digital payment users, with 69% fearing that it may not be as secure as other payment methods. (Visual Objects)
14. Experts are split on mobile payment security
47% of polled cybersecurity professionals had doubts about the security of mobile payments (Business2Community)
15. Wi-Fi considered biggest exploit
The biggest security vulnerability associated with m-payments is public Wi-Fi (26%), closely followed by lost or stolen devices (21%). (ISACA)
16. Public remains sceptical
Doubts around security are deterring users from switching to mobile payments, with 70% of Americans noting it as a concern.(Pew Charitable Trusts)
17. Being hacked is a top concern
Among digital payment users who doubt the method's security, being hacked is their primary concern (41%), followed by fraud at 16% and theft at 12%.
Mobile Payments Methods for Hospitality Businesses
More restaurants, bars, and cafes are offering mobile payment options than ever before, but not necessarily at an even rate. Here are some stats about m-payments in the hospitality industry.
18. M-payments popular among restaurants
In 2023, 66% of restaurants in the US and Canada accept mobile payments, compared to 63% that accept credit cards and 38% that accept debit cards. (TouchBistro)
19. More hoteliers are adopting m-payments
In 2019, payments from mobile wallets accounted for 30% of hotel bookings, with the figure higher among branded and city-based hotels. (PhocusWire)
20. Card and contactless are king in hospitality
9 in 10 (89%) of consumers use cards of contactless payment methods over cash when they visit a bar or restaurant. (Zonal, CGA)
21. Mobile payment use lags behind physical cards
Almost a quarter (24%) of consumers claim to frequently use mobile wallets like Apple and Google Pay in hospitality businesses, compared to 13% that regularly use smartwatches. (Zonal, CGA)
Accepting Mobile Payments is a Must in the Digital Age
There's no denying it, mobile payments open up lucrative opportunities for hospitality and retail businesses by making the payment experience far more convenient for the consumer.
With most US businesses already embracing m-payments, and a growing percentage of consumers leaving their physical wallets at the door, failing to make payments more accessible will only limit sales performance, and hinder the bottom lines of businesses in the digital age.
Aside from unlocking core revenue streams, accepting digital payments through mobiles and other devices also makes transactions more tracible and trackable. This can save precious time for businesses by streamlining cashflow processes, and reducing the headaches that come with managing payments manually.
Fortunately, making the change couldn't be easier. Most retail and restaurant POS systems will come with a chip and pin or contactless card readers that facilitate mobile payments. These will accept all major digital wallets – from Apple to Samsung Pay – as well as payments from physical bank cards.
Hospitality businesses can also create custom QR codes that customers can scan, allowing them to make mobile payments without the support of servers.
The Future of Mobile Payments
The stats speak for themselves. With mobile payments expected to make up 79% of all digital transactions by 2025, and 66% of hospitality businesses already accepting the technology, m-payments are set to be an indisputable part of the payment landscape going forward.
However, it's also true that security concerns around the payment type remain. So to overcome cybersecurity pitfalls, we'd recommend using a POS system with a credible security profile, ensuring your operating system is always up to date, and only linking your system up to a trusted Wi-Fi source.
Mobile Payment Statistics FAQs
Mobile payments make the payment process far more quick and convenient for the consumer. They also open up lucrative opportunities for retail and hospitality businesses by making their goods and services accessible to wider demographics.
However, many experts believe mobile payments are still more vulnerable to security risks like fraud and phishing attempts than traditional methods.
Mobile banking is a banking service that allows users to monitor and manage banking activity through their mobile devices. Mobile payments, on the other hand, are a type of payment system consumers can use to pay for goods and services digitally.
While mobile payments aren't invulnerable to security threats, most believe mobile payments are still more secure than payments involving physical cards. This is because mobile payments use advance methods of encryption and tokenization like facial biometrics.
As an expert in the field of digital payments, particularly mobile payments or 'm-payments,' I bring a wealth of knowledge and experience to shed light on the latest trends and statistics in this rapidly evolving landscape. Having closely followed the developments in mobile payments, I am well-versed in the intricacies of digital wallets, security concerns, market growth, and the impact of mobile payments on various industries.
Firstly, let's delve into the key concepts mentioned in the article:
Mobile Payments: Explained
Mobile payments, abbreviated as 'm-payments,' are digital transactions conducted through smartphones or other mobile devices. These transactions are facilitated by digital wallets such as Google Pay and Apple Pay, which electronically store payment information. The process allows users to make quick, convenient, and secure payments without the need for physical cards.
Mobile Payment App Usage Statistics
- Projected Growth: Mobile payments are expected to constitute 79% of all digital transactions by 2025, compared to 71% in 2021 (Juniper Research).
- Global Users: In 2023, it was predicted that there would be 1.31 billion global mobile payment users, driven by the popularity of NFC-enabled smartphones (Statista).
- Regional Adoption: China leads in mobile payment usage, with 81.5% of smartphone users adopting the technology (eMarketer).
- Pandemic Impact: Mobile payments increased during the Covid-19 pandemic, with 43% of Americans using this transaction type in 2021, up from 29% in 2019 (eMarketer).
- Consumer Preference: Over half (53%) of Americans prefer digital wallets over traditional payment methods like cash or physical cards (Forbes Advisor).
- Demographic Trends: Mobile payments are more popular among younger consumers, with 62% of Gen Z and 53% of millennials using mobile wallets (Morning Consult).
- Potential Growth: 39% of American consumers express willingness to use mobile payments more frequently if supported by more stores and apps (NFC World).
Mobile Payment Market Statistics
- Market Growth: The mobile payment market is projected to reach $587.52 billion by 2030, growing at a CAGR rate of 36.2% (Grand View Research).
- US Transaction Volume: In 2021, mobile payments in the US reached a transaction volume of $1.7 trillion, reflecting a 27% increase from the previous year (FintechFutures).
- Market Dominance: Apple Pay has the largest transaction volume in the US outside of China, with 55.8 million consumers expected to use the platform in 2023 (Oberlo).
- Global Leader: AliPay, based in China, is the world's largest mobile payments platform, serving 1.3 billion users and constituting 40% of total global mobile payments (Merchant Machine).
- Chinese Market Dynamics: Despite China having the largest mobile payment market globally, the total transaction value decreased to 500 trillion yuan in 2022 (Statista).
Digital Payments Security Statistics
- User Concerns: 69% of digital payment users express concerns about the security of digital payments compared to other methods (Visual Objects).
- Cybersecurity Experts: 47% of cybersecurity professionals have doubts about the security of mobile payments (Business2Community).
- Security Vulnerabilities: The primary security vulnerabilities associated with mobile payments include public Wi-Fi (26%) and lost or stolen devices (21%) (ISACA).
- Public Skepticism: Security concerns are deterring users from adopting mobile payments, with 70% of Americans considering it a concern (Pew Charitable Trusts).
- Top Concerns: Among users doubting digital payment security, hacking is the primary concern (41%), followed by fraud (16%) and theft (12%).
Mobile Payments Methods for Hospitality Businesses
- Restaurant Adoption: In 2023, 66% of restaurants in the US and Canada accept mobile payments, surpassing credit cards (63%) and debit cards (38%) (TouchBistro).
- Hotel Bookings: Mobile wallets accounted for 30% of hotel bookings in 2019, with higher adoption in branded and city-based hotels (PhocusWire).
- Payment Preferences: In hospitality, 89% of consumers use cards or contactless methods over cash when visiting bars or restaurants (Zonal, CGA).
- Mobile Payment Usage: Mobile wallet usage in hospitality lags behind physical cards, with 24% claiming frequent use compared to 13% for smartwatches (Zonal, CGA).
The Future of Mobile Payments
Mobile payments are expected to continue dominating the digital transaction landscape, constituting 79% of all digital transactions by 2025. Despite their popularity, security concerns persist, highlighting the importance of robust security measures such as using secure POS systems, keeping operating systems updated, and connecting to trusted Wi-Fi sources.
In conclusion, the statistics affirm the transformative impact of mobile payments, not only as a convenient consumer payment method but also as a significant driver of economic activity for businesses. As businesses increasingly embrace mobile payments, the landscape of transactions is evolving, presenting both opportunities and challenges that demand strategic adaptation and a commitment to security.
