Mobile payments slow to take off but Starbucks leads the way

According to figures from Grand View Research the mobile wallet market is set to reach more than 1,400 million users by 2020.

But a new report by customer engagement specialist PunchTab shows that so far mobile payments are still the preserve of the early adopter.

Only 24 percent of smartphone owners have used a mobile payment app. Interestingly it's coffee chain Starbucks that's leading the way with its own payment app, introducing many customers to retailer-specific payment systems. Google wallet comes a distant second in the most used stakes with Visa Checkout and PayPal Wallet lining up in third and fourth places.

Despite the Starbucks app being most popular 55 percent of millennials surveyed say they want a single mobile payment app that can be used across multiple stores and offer loyalty programs. There's also a good deal of ignorance surrounding where mobile payments can be used. 67 percent of consumers said they didn't know if their favorite stores offer mobile payment options.

Top reasons for not adopting mobile payments include concerns about security (62 percent) and simply not seeing any reason to use it (31 percent). Only seven percent are put off by the difficulty of downloading and using apps.

It's worth noting that the research was carried out before the launch of Apple Pay, so whilst Apple still needs to prove itself in this area the game has moved on.

Tips for retailers wishing to adopt mobile payments include providing extra value by including special offers and loyalty programs, and using younger shoppers as brand ambassadors to entice older users.

More information and research on consumer purchasing habits is available on the PunchTab website.

Photo Credit:  Slavoljub Pantelic/Shutterstock