11.4% of Smartphone Owners Regularly Use Digital Wallets

by | 3 minute read

As the hol­i­day sea­son pro­gress­es, retail­ers may notice more con­sumers are eager to pay for their pur­chas­es with their smart­phones. Specif­i­cal­ly, these shop­pers are con­vert­ing to alter­nate pay­ment sys­tems like Google Wal­let or Pay­Pal in a big way. Blueshift Research has just released data on con­sumers who are using dig­i­tal wal­lets.

BlueShift Research ana­lysts have not­ed that a cou­ple of recent indus­try devel­op­ments are dri­ving inter­est in mobile wal­lets. Apple recent­ly launched Apple Pay now that its lat­est phones sup­port NFC (near-field com­mu­ni­ca­tions). And, Pay­Pal will soon become an inde­pen­dent com­pa­ny as they are spun off from eBay. The mobile wal­let space is huge because com­pa­nies that get on the mobile screen of users will be able to cap­ture a small per­cent­age of every trans­ac­tion. They’ll be eat­ing into the rev­enues enjoyed by cred­it card com­pa­nies.

Cur­rent­ly, about 11.4% of all smart­phone own­ers are using some form of dig­i­tal wal­lets on a reg­u­lar basis. Anoth­er 14% say they’ve used this pay­ment form more than once. A small num­ber, 1.6%, have just signed up for one of these sys­tems and are ready to start using them. That leaves 9.5% who have used mobile wal­lets at least once and over 60% who need to be edu­cat­ed on these prod­ucts.

For now, the largest per­cent­age of con­sumers who use mobile wal­lets, 45%, are between the ages of 18 and 29. How­ev­er, 28.5% of con­sumers who have used this pay­ment form in the past month are over age 60, show­ing that this is not just a young person’s game. The remain­ing con­sumers who use mobile wal­lets are between the ages of 30 and 59.

As more com­pa­nies enter this space, they’ll be tar­get­ing smart­phone users. Over 60% of U.S. adults use smart­phones accord­ing to Audi­enceS­CAN. Women, 54.1%, make up more of this audi­ence than men, 45.9%. These women over-index for hav­ing chil­dren under age 9 in the home and they are like­ly look­ing for time savers, espe­cial­ly smart­phones and mobile wal­lets.

In the next 12 months, over 50% of these audi­ence mem­bers will make pur­chas­es in drug stores, men’s appar­el stores and women’s appar­el stores.  Dur­ing a typ­i­cal week, over 14% of these con­sumers go to retail stores, malls or shop­ping cen­ters. These stores may want to pro­mote their abil­i­ty to accept mobile wal­let pay­ments in order to increase foot traf­fic. And, they may want to pro­mote them­selves via mobile smart­phone apps or text mes­sages as over 25% of these audi­ence mem­bers have tak­en action as a result of see­ing these types of ads in the past 30 days.

Audi­enceS­CAN data is avail­able as part of a sub­scrip­tion to AdMall for Agen­cies. Media com­pa­nies can access Audi­enceS­CAN data through the Audi­ence Intel­li­gence Reports in AdMall.

Kathy Crosett
Kathy is the Vice Pres­i­dent of Research for Sales­Fu­el. She holds a Mas­ters in Busi­ness Admin­is­tra­tion from the Uni­ver­si­ty of Ver­mont and over­sees a staff of researchers, writ­ers and con­tent providers for Sales­Fu­el. Pre­vi­ous­ly, she was co-owner of sev­er­al small busi­ness­es in the health care ser­vices sec­tor.