Apple Pay could take a healthy bite out of PayPal’s mobile payment market share
April 24, 2015 12:49 PM
Consumers think Apple Inc.’s new mobile payment option offers a tasty alternative to PayPal, a new study from 451 Research suggests.
A March study by 451 Research of 4,168 consumers finds that 25% of smartphone owners say they are likely to use mobile payment apps over the next 90 days, and Apple Pay leads the way as the top payment choice. 45% of those planning to use mobile payment apps say they plan to use Apple Pay. PayPal ranks second with 28%.
“Planned use of Apple Pay has been on an upward trajectory since it became available six months ago—with the service helping to spark consumer demand for mobile payment technologies,” says Andy Golub, survey research director for 451 Research.
Apple Pay users are also the most satisfied among those paying with their mobile devices, with 66% of those who have used Apple Pay saying they’re very satisfied with the service compared with 45% for PayPal and 33% for Google Wallet.
Of the 25% of smartphone owners who planned to pay via mobile devices in the next 90 days, 11% said they would be very likely do so; 14% somewhat likely.
Smartphone owners using Apple’s iOS are more than twice as likely (34%) to use mobile payment apps compared to Android (16%), BlackBerry (13%) or Windows Phone (5%) users.
The survey also find security is a top priority in mobile payments. Secure storage of financial account information (84%) is the most important feature in a mobile payment app, according to likely users, followed by widespread acceptance among merchants (70%).
Another aim of the survey was to gauge overall consumer interest in Samsung’s new mobile payment service set to launch this summer. 8% of respondents say they’re very or somewhat likely to use Samsung Pay in the future. But that number jumps to 25% among Samsung smartphone owners and climbs to 46% among those planning to buy a Samsung smartphone in the next 90 days.