Apple Pay took the lead in the m-payment apps classification in the US in 2018 after bumping Starbucks to the second position, according to data from eMarketer. A total of 27.7 million Americans used the app to make a purchase during the year. For the first time, a generic mobile payment app became more popular than the Starbucks mobile app, which had long led the category despite being specific to one retailer. Researchers said the change of leadership was the result of the growing number of NFC payment terminals that are compatible with Apple Pay.
Since eMarketer's last mobile payments forecast in May 2018, Apple Pay use grew even faster than expected. In 2019, Apple Pay is estimated to have 30.3 million users in the US, representing 47.3 percent of proximity mobile payment users. Following closely behind, the Starbucks app will have 25.2 million users this year, representing 39.4 percent of proximity mobile payment users. Google Pay and Samsung Pay are far behind with 12.1 million and 10.8 million users, respectively.
Technology for proximity mobile payments is gaining traction, especially at frequently used retailers like grocery stores. According to Digital Trends, Apple Pay is expected to be available in 70 percent of US retailers by the end of 2019. The strong uptake prompted eMarketer to revise its figures upward. And while the Starbucks app enjoyed around a 40 percent market share of mobile payments users for a few years, its growth potential is more limited since it can only be used at Starbucks stores.
Total spending via proximity mobile payments will approach USD 100 billion this year in the US. That means that on average, a user will spend USD 1,545 per year using proximity mobile payments, up more than 24 percent over last year. Overall, the total number of people using proximity mobile payments in the US in 2019 will grow 9.1 percent to 64.0 million. That represents nearly 30 percent of all US smartphone users.
Although the use of proximity mobile payments is growing among all age groups, US adults ages 25 to 34 are the largest demographic in terms of absolute size and penetration, with 21.2 million users, or nearly 50 percent of all smartphone users in this age group. The fastest growth is among Americans ages 55 to 64 but from a small base.
