A new report from Business Insider Intelligence addresses how in -
store mobile payments volume will grow through 2021, why that's below past expectations, and what successful cases can teach other players in the space.
We too believe Apple Pay will kickstart consumer usage of mobile payments and are particularly bullish on growth
in mobile payments volume now that the feature has launched.
Because of the volume of payments MCX members command and the original launch timelines, we had previously thought that CurrentC would drive
significant mobile payments volume this year, even if adoption among consumers was lackluster.
CurrentC's delay will have an especially big impact
on mobile payments volume this year and next because member merchants can not accept mobile payments from other wallets until months after CurrentC's launch.
As Apple Pay and other mobile payments technologies featuring similar security features take off, we expect there to be significant implications for the payments ecosystem beyond simply
increased mobile payments volume.
Between 2015 - 2020, we expect volume to rise by a compound annual growth rate (CAGR) of 80 % to
bring mobile payments volume to $ 503 billion by 2020.
This includes PayPal, with over 150M active digital wallets, Venmo, which is processing more than $ 1.5 B in
mobile payment volume annually and Coinbase in the coming months.
But that's not the case — though Business Insider Intelligence projects that US in -
store mobile payments volume will quintuple in the next five years, usage is consistently lagging below expectations, with estimates for 2019 falling far below what we expected just two years ago.
PayPal has reported strong third quarter results after growing its active user base to 218 million and experiencing an upsurge
in mobile payments volumes.
That would come out to $ 61.5 billion or 51 % of
the mobile payment volume we forecast for 2016.
This announcement contains forward - looking statements, including statements about the expected impact of the Braintree acquisition on PayPal's and eBay's financial and operating results and business, the operation and management of Braintree after acquisition, the anticipated timing of the closing of the acquisition, PayPal's projected
mobile payments volume, and Braintree's projected payments volume and mobile payments volume.
Our new estimate finds that US in - store
mobile payment volume will reach $ 75 billion this year.
Forecasts
mobile payment volume through 2018 as well as mobile payment volume as a share of in - store payments.