Barraza & Associates Announces First Results from Financial Technology Study

Higher-income Millennials are the prime users of mobile payment solutions

However, the median number of purchases made using any of these solutions is relatively low

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Sep 18, 2017, 06:00 ET

SAN FRANCISCO, Sept. 18, 2017 /PRNewswire/ -- Today, Barraza & Associates., a customer insights & strategy company specializing in financial technology and ecommerce, announced the first of many results, from their benchmark study about consumers' usage and impressions of traditional and emerging financial services and payment solutions. During our May 2017 survey with 1,000 U.S. consumers, we investigated consumers' opinions about banking institutions, various payment solutions – online, contactless, peer-to-peer - and the emerging areas of online lending, investing, and personal financial management.

Usage of Apple Pay, Android Pay or Samsung is strong among Millennials. Approximately one-quarter of people 25 to 34 year olds used these payment solutions in the past 30 days.

Usage of Apple Pay and other similar payment systems decreases significantly as the age of the consumer increases. For example, usage was seven percentage points lower among 35 to 44 year olds, and nearly twenty percentage points lower among consumers who are 45 and older.

And, while overall usage is high among Millennials, they're not using the solutions very often for making purchases at brick & mortar locations.

At first glance, the average number of purchases (9) made with Apple Pay in the past 30 days is encouraging. However, this figure appears to be skewed due to a small number of "heavy users".
When we conducted a more realistic assessment by calculating the median, it resulted in a metric of only 4 purchases made during the past 30 days (regardless of which mobile payment solution used).
The low number of purchases doesn't appear to be due to an issue with the solutions themselves, as consumers are very likely to recommend each brand (as measured by NPS, i.e., Net Promoter Score).

Barraza & Associates is continuing to probe further into our dataset to better understand consumer interest in these mobile solutions, as well as their opinions of existing brands such as Wells Fargo and Bank of America, and solutions and tools from companies like Venmo, Google Wallet, PayPal, Betterment, Personal Capital, and many others.

About Barraza & Associates. Barraza & Associates is a customer insights & strategy firm based in San Mateo, CA, located in the heart of Silicon Valley. We've been in the insights & strategy business for over 30 years, and work with many of the leading financial technology, ecommerce, and data aggregation companies in the country. http://barraza.associates/

Al Barraza
Barraza & Associates
1-650-539-9651
[email protected]

SOURCE Barraza Associates