Since 2011, RTi has been proactively monitoring Mobile Engagement and the Mobile Wallet phenomenon for several of our clients, representing a diverse cross-section of business verticals. This continuous initiative captures key elements of mobile banking and shopping dynamics among 1,500 US consumers each month. The primary goal is to gain insights into their engagement with mobile devices as they relate to the digital/mobile wallet.
Mobile wallet engagement is not fully capitalizing on opportunity represented by the growth in mobile device ownership/usage.
While mobile device ownership has risen at a year over year rate of nearly 11%, mobile banking and shopping/payment transactions have not kept pace, growing year over year at a single digit rate.
- Looking at the year ago tracking results, some 72% of those surveyed reported mobile device ownership in Oct ’14, a gain of 7 points over the level seen in Oct ’13.
- Despite that increase, usage of mobile devices for banking transactions over the past 12 months has averaged at just a point or two over the 42% level recorded in Oct ’13.
Mobile wallet shopping and banking volumes will likely continue to rise as long as mobile device ownership grows organically. But to us, a strategy to capture a higher share of mobile device penetration seems to be a pathway to an incremental opportunity worth identifying.
As a rising tide will lift all ships, mobile wallet shopping and banking volumes will likely continue to rise as long as mobile device ownership grows organically. ApplePay, however, has already generated significant excitement among card issuers and lots of buzz among consumers and just may be the catalyst to finally push mobile wallets into the mainstream.
Stay tuned and we’ll see what the numbers look like over the coming quarters.