US consumers to pass on mobile payments?

The window of opportunity in the US for mobile payment providers like Apple Pay and Google Pay is closing fast. Despite high levels of support from retailers, only 14 percent of US respondents currently use OEM-Pay (payment services provided by smartphone vendors) for instore purchases, according to a new survey from Juniper Research. The survey covered over 1,000 smartphone users across the US and the UK.

Future growth is likely to be threatened by increasing deployments of contactless cards in the US, with Chase becoming the latest major bank to announce contactless Visa rollouts.

“Time is running out for OEM-Pay providers to establish a dominant position in the US,” remarked research author James Moar. “Many of mobile payment’s benefits, like increased transaction speed, are not exclusive to smartphones, and our survey shows that the majority of users who have not adopted OEM-Pay are more interested in services like contactless cards than mobile-based payments.”