Mobile payment apps are on the rise. Customers increasingly demand in-app payment options, and 65% of experts in the mobile payments field predict huge growth in mobile payments in the coming year.
The results of our survey, The State of Mobile Payments in 2021, reveal just how quickly customers are embracing mobile payments — and how businesses can build a competitive app by meeting customer expectations.
Adoption and Usage
The COVID-19 pandemic boosted interest in mobile payment options. In our survey, 55% of respondents said they use mobile payment options more often now, due to the pandemic.
Still, even long-time users of these apps have some concerns about those apps. The most commonly named worries included security and privacy, errors and overdrafts, and poor customer service.
Despite these concerns, many people rely on mobile payment apps for at least some of their banking tasks:
- About 70% of respondents said they used these apps to send or receive money or to pay for goods and services.
- More than 4 in 10 said their mobile apps had replaced cash.
- Nearly one-quarter (23%) said their apps had replaced plastic.
Customers’ comfort with app-based transactions may help them become more comfortable with other app-based banking services, like loan applications. Therefore, brand awareness and good customer service are a must for this market to grow.
Popularity and Brand Awareness
Which mobile payments companies stand out in customers’ minds?
Currently, the top spot goes to PayPal, which 36% of our respondents said they’d downloaded most recently, and 43% said they used “frequently.” But PayPal faces some competition from:
- Cash App — 16%
- Venmo — 12%
- Apple Pay — 10%
- Zelle — 7%
- Samsung Pay — 4%
- Google Pay — 4%
- Xoom — 3%
About 50% of respondents indicated they’d heard of nearly all of these apps. Only one respondent said they hadn’t heard of PayPal, while 57% hadn’t yet heard of Xoom. This means plenty of space remains for mobile payment options to build brand awareness and grow in popularity.
When it comes to customer service, what really worries the users of mobile payment apps? About a quarter of respondents don’t know how to reach an in-person representative (29%) or don’t think the customer service representative will be able to solve my problem (25%).
Providing clear, easy-to-use customer service options can do much to assuage customers’ concerns about handing their banking information to a new app. When customers know they can get the information and help they need, they’re more likely to trust their mobile payments app and to use it more often.
Building the Right App
Mobile payments are an open playing field, with no clear leader and a panoply of opportunities to gain brand recognition and customer loyalty. To stand out, focus on fast, easy, reliable tools and strong customer service.
Image by: Priscilla Du Preez