According to a Tech Headquarters article, more consumers use merchant mobile payment apps than Apple Pay, Google Pay or Samsung Pay, as retailers increasingly embed rewards and perks to encourage customers to download and use their payment apps, boosting customer loyalty. And, these rewards are getting competitive. Amazon now offers a discount on credit card fees to other retailers if their customers choose Amazon Pay. Universal mobile payment apps like Apple Pay are not broadly incorporating loyalty programs and often require multiple levels of authenticity to use them. For mobile payments to become more mainstream, consumers need to see a real benefit that’s easy to use, not just another way to pay.

  “eMarketer analyst, Cindy Liu stated, “There is still much work to do, however. My tech-savvy girlfriend isn’t a fan of Apple Pay. “When I use it on the bus to work, I’m already active on my phone,” she says. “I have to stop what I’m doing, turn the screen off so I can double tap the home button and then I have to scan my thumbprint in order to use Apple Pay. It’s quicker to tap my contactless debit card and I can continue listening to my music etc.”

This story points to the value proposition of mobile payment apps In the U.S. and the need for quick and easy login, integrated with applications that consumers are already using along with incentives such as rewards and perks, making mobile payments a more viable and preferable option. Mercator Advisory Group’s CustomerMonitor Survey Series has found that half of U.S. consumers use their mobile phone to make payments either online or in stores, but its use is lackluster, except for a small segment of avid users, whose use is increasing. Mobile payment will gain broader appeal and higher use when the benefits are clearly defined and easy to use.

Overview by Karen Augustine, Manager of Primary Data Services at Mercator Advisory Group