Mobile Commerce Driven by Millennials and Minorities

The Mercator Advisory Group has released a report, the first of eight, examining mobile payments in the U.S.

The report, titled “Mobile Payments 2013: Young Adults and Minorities Take the Lead,” specifically goes over the influence these demographics have on mobile commerce in the U.S.

3,000 consumers in the United States were surveyed, and were asked about their mobile payment usage in-stores, on their devices, and their satisfaction with mobile payment related services and apps, including e-loyalty and security alerts.

75% of young adults have their own smartphone or tablet, compared to 55% of adults.

The report finds that young adults and minorities are more likely to be smartphone enabled, which leads to higher adoption of mobile payment services.

Usage of mobile payment apps at checkout is largely driven by incentives.

According to Karen Augustine, the author of the Mobile Payments 2013 report, “mobile payment use and interest is growing, but there needs to be a compelling reason to launch a payment app at checkout. Greater automation in the couponing and loyalty programs to enable consumers to get a discount with a purchase will help move the needle of consumer adoption of mobile payments.”

Security is also a major concern for consumers, and a major hurdle for mobile payment adoption is gaining consumer confidence in sharing their financial information with mobile payment apps and services.