Beauty Store Business magazine - April, 2019

More Holiday Shoppers Pay With Smartphones

Nearly 30% of U.S. smartphone owners plan to use mobile payment offerings, such as Apple Pay or Google Wallet, for shopping in stores this holiday shopping season, according to the 2014 Holiday Mobile Payments Survey from Stratos, creator of the Bluetooth Connected Card Platform.

In fact, 17% of the smartphone users said they would spend more because of these new payment options. Smartphone users wanted to use mobile payments applications such as Apple Pay and Google Wallet in these locations for the holidays:

  • 66% Department stores
  • 48% Discount retailers/super stores
  • 43% Coffee shops
  • 42% Fast-food places
  • 41% Toy stores
  • 35% Drug stores
  • 28% Hotels
  • 28% Upscale restaurants
  • 26% Bars
  • 23% Boutiques

However, when it came to American smartphone users’ comfort level with the new technology, Stratos found less than 5% were “more comfortable” paying with their devices than using traditional payment cards such as credit or debit cards. Sixty-nine percent of smartphone users were uncertain which stores would actually accept this type of phone payment.

When asked what appeals most about mobile payments for in-store shopping, the following answers were selected:

  • “I don’t have to worry about getting my credit or debit cards stolen,” 37%
  • “I can track my spending more easily electronically,” 32%
  • “Phone pay is not appealing—I would rather pay by payment card,” 31%

“It is clear that people are interested in mobile payments but it doesn’t mean they’re going to abandon their cards,” said Thiago Olson, CEO of Stratos. “Our research shows that while American smartphone users would like to use their smartphones to pay for gifts at department stores, they are less likely to want to use the same system to pay at a hotel, an upscale restaurant or a bar. Our findings show that Americans are more comfortable paying with their cards. We are excited to deliver connected cards to further improve the consumer in-store mobile-payment experience, increasing spending using a familiar, universal accepted, dynamic card.”

[Image: gettyimages.com/fruttipics]