Partly due to technological advances. And partly due to COVID-19, payment apps are more popular than ever. Earlier, we looked at the huge success of the forerunner PayPal.
The Future Is Here: Payment Apps Are More Popular Than Ever
For evidence of the popularity of the new payment apps, we turn to eMarketer. And three eMarketer charts.
The pandemic accelerated the adoption of mobile payment platforms (used at point-of-sale), as Americans sought out retailers offering contactless services. As a result, user and transaction value growth have accelerated.
In-store mobile payment app use will hit a milestone in 2021, reaching 101.2 million among Americans ages 14 and older. This comes after 29.0% year-over-year (YoY) growth in 2020. Usage is now on track to surpass half of all smartphone users by 2025.
“Many consumers tried mobile wallets at point-of-sale for the first time last year to avoid using paper currency and credit and debit cards,” said eMarketer forecasting analyst Oscar Orozco at Insider Intelligence. “The largest amounts of new users were Gen Z and millennials. We project that there will be around 6.5 million new mobile wallet users per year from 2021 to 2025, of which more than 4 million will be Gen Zers. Millennials will continue accounting for around four in 10 mobile wallet users, although that share will shrink.”