Despite advances in mobile payment technology, young Americans don’t seem too eager to use their phones as cash. As many as 35% of millennials don’t use mobile payment apps at all, according to a new survey. And most millennials who do take advantage of the apps don’t use them in stores, but for peer-to-peer transactions via Venmo – suggesting that mobile wallet integration may not be the most strategic digital investment for retailers.
These findings are echoed in L2 research. Just 17% of U.S. mobile phone users have paid for items in stores using their phones, according to L2’s Mobile Payments report.
Rather than investing in mobile payment, brands could benefit from investing in improvements to the mobile checkout experience. While mobile accounts for 60% of online shopping time, it only generates 16% of transactions, according to the study. By streamlining the checkout experience, brands could encourage more conversions.