New Report Projects Mobile Payments to Grow 80% by 2020

BI Intelligence has compiled a detailed report on mobile payments that contends that while mobile payments are becoming more popular, they still face some high barriers, such as consumers’ continued loyalty to traditional payment methods and fragmented acceptance among merchants. However, as loyalty programs are integrated and more consumers rely on their mobile wallets for other features like in-app payments, usage will surge over the next few years.

Key takeaways from the report:

• US in-store mobile payments will reach $75 billion in 2017 but will grow 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.