Apple Pay could soon become the default alternative payment method for many
A new analysis by Adobe Digital Index (ADI) finds that smartphone conversion rates are much higher when retailers offer digital wallet payment options, such as Apple Pay, PayPal, Amazon Payments, or Google Wallet.
The survey finds that 23 percent of purchases made on smartphones are completed using an alternative payment method. This compares to just 16 percent who use digital wallets across desktops, and 19 percent who use the payment option on tablets.
Analyst Tyler White notes that digital wallet usage on mobile is higher because people find it convenient not to have to enter credit card information while on the go.“People are also more wary of entering their credit card information on mobile devices,” White said. “They don’t feel as secure.”
The analyst predicts that Apple Pay will soon become the default alternative payment tool for many iPhone users. “Mobile conversion rates are expected to increase as digital wallets become more commonplace for online shopping,” he said.
Other findings of survey include:
Adobe Digital Index Data: Mobile App Engagement and Mobile Web Trends
- Phone app usage growth outpaced tablets by 2X (70% vs. 30% year-over-year (YoY))
- iOS represents 65% of app launches, while Android represents 34%
- Average iOS app is used twice as long as the average Android app
- Android app usage growth surpassed iOS by 2X (80% vs. 40% YoY)
Digital Wallets & iBeacons (Consumer Survey Data)
- Consumers prefer PayPal, Amazon Payments and Google Wallet more often when shopping from smartphones (23% of purchases) or tablets (19% of purchases)
- 34% of consumers receive location-based promotions, while 70% say they are open to receiving them
- 18% of marketers use iBeacons today, but that is expected to double in 2015
- 33% of consumers use mobile in-store shopping
The ADI findings are based on an analysis of more than 700 million app sessions and 18 billion visits to more than 10,000 U.S. websites and apps.
See also: Apple’s Eddy Cue goes on ‘shopping spree’ to show off Apple Pay, Apple Pay seeing significant adoption at retailers like Whole Foods and McDonald’s, and Staples now supports Apple Pay at its more than 1,400 retail locations in the United States.
