Who’s making the most mobile payments?
Consumers with money to spare: The wealthy have the highest adoption rate of mobile payment, with 4 in 10 users coming from high-income households. This makes mobile payment solutions very relevant to retailers offering premium goods (in traveling, education, transportation, insurance, etc.). Nevertheless, an Ipsos survey found that on average, six in 10 affluent consumers with an annual income of US$100,000+ purchase luxury goods/services only once a year or less. As many affluent consumers are hesitant to indulge in luxury purchases too often, marketers advise not to assume that the affluent are idle; most are married, family-oriented, and part of two-worker households. They also warn that retailers should not assume that wealthy consumers are willing to spend blithely. It’s true that they do occasionally indulge in luxury, especially on experiences such as travel, but for the most part they are careful with their spending.
The Chinese market—always ahead of the game: From a global comparison perspective, it is estimated that more than half a billion people in China paid with their phones in brick-and-mortar shops, cafés, and restaurants in 2019, according to the Statista Digital Market Outlook. According to the same study, Chinese consumers also demonstrate an extremely high penetration rate of around 30%. The results show they also tend to be very brand-sensitive, believing that the name indicates the quality of a product, and are eager to find out what is available, particularly concerning foreign products. Overall, China is the largest market for global luxury brands, accounting for approximately 47% of global sales of consumer luxury products, according to a study from Santander Trade Portal. This presents a huge opportunity for merchants.
Staying ahead of the mobile payments curve requires agility and responsiveness when developing solutions. For merchants, this means seeking out vendors who combine the security of credit cards with the convenience of smartphones. And those that offer a wide range of mobile payment solutions, and take regulations, data protection laws, and consumer preferences from each market into account. For consumers, this is a golden age of customer experience—we can all look forward to exciting new ways to pay driven by innovative mobile technology.