Merchants are showing the way to capture the U.S. consumers’ attention in use of mobile wallets, and the financial institutions facilitating the effort will be able to demonstrate continued value to their merchant clients according to Mercator Advisory Group’s latest research report, Merchant Mobile Wallets: Mobile Payments in Action. Adoption of universal mobile payment methodologies such as Apple Pay and Samsung Pay continues to lag in the United States compared to developed economies in Europe and Asia. Technology companies involved in the production and distribution of mobile devices (Apple, Samsung) have assumed the mantle of lead advocate, while many major banks and mobility network providers assist in a support role. Modifying existing electronic payment methods to be mobile and reside on the near ubiquitous smartphone device, now estimated to be used by between 80% and 85% of U.S. mobile subscribers, has been an important effort in retail payments for some time. The migration of noncash payment to the mobile device will eventually be widespread, but at present it proceeds at a pace reflective of technology device upgrade. However, several players in the merchant sector have recognized and exploited opportunity to reshape payment processes and methods to their own benefit and as a marketing tool. This shift represents an opportunity for merchants and financial institutions alike, according to this research by Mercator. This Mercator Advisory Group research report defines single-merchant and merchant-aggregator mobile wallets, profiles examples of each, and explains how these two wallet categories differ from universal mobile wallets. Coverage includes the strengths and weaknesses of the two merchant wallet styles and the characteristics of merchants that would most benefit from each style. “The technology that is prerequisite for the use of Apple Pay, Android Pay, and Samsung Pay is not held by a majority of Americans on their current smartphone devices. This creates an opportunity for merchants and their partners to create and refine business–specific payment solutions that generate richer customer engagement interactions and consumer rewards. Merchants and their partners have a chance to demonstrate added value and provide incentives for customers to adopt merchant mobile payment apps that leverage mobile technology already in their hands,” commentedJoe Walent, Senior Analyst, Emerging Technology Advisory Serviceand author of the report.

1. Merchant Mobile Wallets:
Mobile Payments in Action
April 2016

2. 2016 Mercator Advisory Group
Merchants are showing the way to capture the U.S. consumers’ attention in use of
mobile wallets, and the financial institutions facilitating the effort will be able to
demonstrate continued value to their merchant clients according to Mercator Advisory
Group’s latest research report, Merchant Mobile Wallets: Mobile Payments in
Action. Adoption of universal mobile payment methodologies such as Apple Pay and
Samsung Pay continues to lag in the United States compared to developed
economies in Europe and Asia. Technology companies involved in the production and
distribution of mobile devices (Apple, Samsung) have assumed the mantle of lead
advocate, while many major banks and mobility network providers assist in a support
role.
New research describes opportunity for merchant
payment services providers in mobile payments market

3. 2016 Mercator Advisory Group
Modifying existing electronic payment methods to be mobile and reside on the near
ubiquitous smartphone device, now estimated to be used by between 80% and 85%
of U.S. mobile subscribers, has been an important effort in retail payments for some
time. The migration of noncash payment to the mobile device will eventually be
widespread, but at present it proceeds at a pace reflective of technology device
upgrade. However, several players in the merchant sector have recognized and
exploited opportunity to reshape payment processes and methods to their own benefit
and as a marketing tool. This shift represents an opportunity for merchants and
financial institutions alike, according to this research by Mercator.
The Mercator Advisory Group research report Merchant Mobile Wallets: Mobile
Payments in Action defines single-merchant and merchant-aggregator mobile
wallets, profiles examples of each, and explains how these two wallet categories differ
from universal mobile wallets. Coverage includes the strengths and weaknesses of
the two merchant wallet styles and the characteristics of merchants that would most
benefit from each style.
Cracking the code to motivate U.S. consumers to adopt
mobile wallets

4. 2016 Mercator Advisory Group
“The technology that is prerequisite for the use of Apple Pay, Android Pay, and
Samsung Pay is not held by a majority of Americans on their current smartphone
devices. This creates an opportunity for merchants and their partners to create and
refine business-specific payment solutions that generate richer customer
engagement interactions and consumer rewards. Merchants and their partners
have a chance to demonstrate added value and provide incentives for customers
to adopt merchant mobile payment apps that leverage mobile technology already
in their hands,” commented Joseph Walent, Senior Analyst, Emerging
Technologies Advisory Service and author of the report.
Joseph Walent
Senior Analyst,
Emerging Technologies Advisory Service
Mercator Advisory Group

5. 2016 Mercator Advisory Group
• The objective of the merchant mobile wallet
• How the two types of merchant mobile wallets—single-merchant and
merchant-aggregator—function, with profiles of examples of each type
• Merits of merchant mobile wallets versus merits of universal wallets
• Near-term opportunities for merchant mobile wallets
• Estimates of merchant mobile wallet spend in the United States
Highlights of the research report:

6. About the research report:
2016 Mercator Advisory Group
This research report contains 21 pages and 3 exhibits.
Companies mentioned in this report include: Cumberland Farms, Dunkin Donuts,
LevelUp, Starbucks, Target, Walmart, and Zipline.
Members of Mercator Advisory Group’s Emerging Technologies Advisory
Service have access to these reports as well as the upcoming research for the year
ahead, presentations, analyst access, and other membership benefits.
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7. About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory
services firm exclusively focused on the payments and banking industries. We
deliver pragmatic and timely research and advice designed to help our clients
uncover the most lucrative opportunities to maximize revenue growth and
contain costs.
Our clients range from the world's largest payment issuers, acquirers,
processors, merchants and associations to leading technology providers and
investors. Mercator Advisory Group is also the publisher of the online payments
and banking news and information portal PaymentsJournal.com.
2016 Mercator Advisory Group