Android / Samsung Pay Launch Successfully, But Still Trail Apple Pay in Mobile Wallet Race
Our latest primary consumer research on mobile payments (from a survey of 1,279 smartphone users conducted in December of 2015) suggests that Android Pay and Samsung Pay are off to a good start: 1 in 8 Android users have made a purchase with one of these mobile wallets.1 As with Apple Pay, however, consumer adoption and usage still has a long way to go.
- Awareness and usage of Android/Samsung Pay are modest, and lag ApplePay.
- 50% of consumers and 63% of Android users are aware of Android/Samsung Pay, while 73% of consumers and 84% of iPhone 6 users indicated that they have heard of Apple Pay (see Figure 1). 13% of Android users report having used Android/Samsung Pay at least once, compared to 20% of iPhone 6 owners that have used Apple Pay at least once.
- Only 2% of Android users report using Android or Samsung Pay regularly (every week/twice a month); 3% of iPhone 6 owners reported using Apple Pay regularly.
Figure 1: Mobile Payments Awareness:
Android/Samsung Pay vs. Apple Pay
Figure 2: Mobile Payments Usage
- Card loading patterns and channel use are similar to Apple Pay: most Android users have loaded more than one card, and the physical point of sale is the primary origination channel.
- Android users reported an average of 1.9 cards loaded into their mobile wallet (see Figure 3A), compared to 2.3 cards loaded by the average Apple Pay user.
- 86% of cards loaded into Android/Samsung wallets were general-purpose payment cards (38% credit, 37% debit, 11% prepaid), while 14% were proprietary retail store or loyalty cards (see Figure 3B). The mix of cards loaded for Apple Pay is similar, although store/loyalty cards account for a greater percentage of the card mix following their inclusion in Apple Wallet beginning in Fall 2016.
- 82% of Android/Samsung Pay users report having made a purchase in-store, and 48% report having made an in-app purchase (only 18% have made only in-app payments). A majority of Apple Pay users have also made in-store payments, although a significantly higher percentage of users (34%) have only made in-app purchases (see Figure 4).
Figure 3: Cards in Wallet
Figure 4: Android/Samsung Pay Purchase Location
- Despite low levels of adoption and usage, those that have tried Android/Samsung Pay have generally been satisfied with their experience.
- 85% of Android/Samsung Pay users are at least “somewhat satisfied,” and 53% are “very satisfied,” with their payment experience (see Figure 5). While these figures are lower than current satisfaction levels for Apple Pay users, they are nearly identical to results for Apple Pay at a comparable timeframe post-launch.
- Also consistent with Apple Pay are the low levels of dissatisfaction among users: no users reported being somewhat or very dissatisfied with their experience.
Figure 5: Consumer Satisfaction
“Overall, how satisfied or dissatisfied are you with the experience?”
Implications & Conclusion
First Annapolis estimates that U.S. POS mobile wallet volume will reach $1.2 trillion by 2020, and based on the early results of our research, we believe the industry is on track to achieve this forecast. Although increases in eligible handsets and acceptance locations are required, consumers’ early positive experiences—both with Apple Pay and Android/Samsung Pay—bode well for longer term success.
1 Results for Android Pay and Samsung Pay were combined. Samsung Pay and its supporting device, the Galaxy s6, were recently released and there are an insufficient number of devices / users to permit effective sampling of Samsung Pay on a stand-alone basis. User results are based on nearly 500 survey respondents with an Android device (and therefore the ability to use Android/Samsung Pay).
For more information, please contact Hugh Gallagher, Principal, firstname.lastname@example.org, specializing in Payments Strategy and Innovation.
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