More than 100m Americans to make an in-store mobile payment in 2021

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.

Apple Pay remains the dominant player with 43.9 million users in 2021. Between 2020 and 2025, it will add 14.4 million users, far more than its competitors. That will increase its lead over No. 2 Starbucks. In third place, Google Pay will add 10.2 million users by the end of the forecast period. Samsung Pay’s growth is stagnant, adding just 2 million users between 2020 and 2025.

Not only has mobile wallet usage increased, but the average annual spend per user will grow 23.6% in 2021 to $2,439.68. It’s now on pace to surpass $3,000 by 2023.

Despite rapid adoption of mobile payments during the pandemic, there are two key issues preventing more pronounced growth. First, many consumers, especially older ones, can find it difficult to set up and use a mobile wallet app. Those who do often don’t use it consistently. Second, some small businesses still can’t accept mobile payments. The hardware and software needed can be expensive for some small and medium-sized businesses (SMBs).