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Mobile and Alternative Payments in the U.S., 4th Edition


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Mobile and Alternative Payments in the U.S., 4th Edition

Are cash, checks and even credit cards becoming relics of the past?

Maybe not yet – but if the projected growth of the mobile and alternative payment options continues, the only things left in our wallets may be pictures and a driver’s license.

In our new report, Mobile and Alternative Payments in the U.S., 4th Edition, Packaged Facts examines how emerging and alternative payments are reshaping the consumer purchase experience. People now use PayPal almost as often as debit and prepaid cards to buy online. Apple Pay launched to great fanfare, while Visa Checkout brought the Visa brand to online payment facilitation.

With these and other developments, Packaged Facts projects that POS mobile payments reached $35 billion in 2014 – and that robust growth will continue through 2017. Mobile wallets are being reimagined beyond merely proximity payments to more broadly facilitate ecommerce and wrap add-value features and benefits into the mix.

Mobile & Alternative Payments in the U.S. gives industry participants the insight the need to stay abreast of this dynamic market. Report coverage includes a market size and forecast for mobile POS payment value and a market size for mobile wallet transaction value. The report:

  • Explores a range pros and cons affecting mobile payments growth (including NFC and Host Card Emulation trends, mobile wallet reimaging, and mobile banking and payment trending),
  • Provides historical analysis of alternative payment categories (including online and mobile person-to-person transfers; person-to-person (P2P) and money transfer; online and walk-in bill payment; secure online payment; card-present vs. card-not-present transactions; and mobile remote deposit capture; and Assesses the degree the underbanked and unbanked are using mobile financial services, including mobile financial, promotional & shopping tools; mobile payment methods; mobile payment methods at point of sale; and P2P.
Another feature of the report is a thorough profile of mobile payment consumers, examining our use/frequency of mobile banking and specific mobile banking features, use/frequency of mobile payment, use of a range of P2P methods, including PayPal, bank wire transfers, bank P2P transfers, money transfer services, and other emerging methods, and how we choose to pay at POS and via the internet.

The report also provides in-depth competitive analysis of industry participants and their mobile payment strategies, including those employed by:
  • Card networks American Express, Discover Financial Services, MasterCard and Visa
  • Alternative payments providers and retailers, including Amazon Payments, Apple Pay, Google Wallet, LevelUp, Merchant Customer Exchange, PayPal, Square, Softcard and Starbucks.


  • Executive Summary
    • Report Scope
    • Report Summary
      • Market size and forecast
      • Mobile banking trends
      • Mobile payments trends
      • Point-of-sale and internet purchase methods
      • P2P usage trends
      • Consumer use of mobile financial, promotional & shopping tools
      • Mobile trends and the unbanked
      • Mobile payments strategies: card associations
      • Mobile payments strategies: alternative payments providers
  • Market Size and Forecast
    • Mobile payments at the point of sale
      • Mobile wallets: the Fed's definition
        • Table Mobile Wallet Payments: Number, Value and Average Value, 2012
      • Mobile POS payments: Packaged Facts' definition
        • Table Adult Consumer Mobile POS Payments Transaction Value, 2014
        • Table Mobile POS payment value: 2014-2017
    • Growth factors
      • Increasing consumer adoption rates
        • Table Mobile Banking and Mobile Payment Usage, by Type of Phone Used, 2012 vs. 2014
      • Reimaging the mobile wallet
      • EMV card adoption way behind
      • NFC merchant adoption very low
      • EMV "re-terminalization" to provide a boost?
      • Host card emulation opens things up
    • Alternative payment initiation methods: historical trends
      • Payment segments
      • Online/mobile bill payments
      • Online/mobile person-to-person transfers
        • Table Online & Mobile Bill Payments: Number, Value & Average Value, 2012
      • P2P and money transfers
        • Table P2P & Money Transfers, by Payee Location, Transaction Value Range, Clearing System & Origination Channel: Number & Value, 2009 vs. 2012
      • Online and walk-in bill payments
        • Table Online & Walk-In Bill Payments: Number & Value, 2009 vs. 2012
      • Secure online payments
        • Table Secure Online Payments: Number, Value and Average Value, 2012
      • Card-not-present card transactions a growing slice of the pie
        • Table Credit Card and Debit Card Value & Volume: Card-Present vs. Card-Not-Present, 2009 and 2012
      • Mobile remote deposit capture catching on
  • Mobile Banking Trends
    • Summary analysis
    • Online banking widely accepted
      • Out of 48 online activities, mobile banking fifth most prevalent
    • Mobile banker definition
    • Mobile bankers
      • Table Adults Who Used Mobile Banking in Past 12 months & Past 30 Days; Times Used per Month, 2014
    • Mobile banking features & methods
    • Demographic analysis
      • Generational trends bode well for uptake over time
      • HH income implies barrier to use
        • Table Mobile Banking Feature & Method Usage Penetration, by Age & HH Income, 2014
      • Gender differences
      • Racial/ethnic driver
      • Urban skew
        • Table Mobile Banking Feature & Method Usage Penetration, by Gender, Population Density and Race/Ethnicity, 2014
  • Mobile Payments Trends
    • Summary analysis
    • Mobile payment definition
    • Mobile payers
      • Table Mobile Payments: Usage Penetration, Usage in Past Month & Monthly Usage Frequency, 2014
    • Mobile payment methods
      • Table Mobile Payment Methods, by Demographic, 2014
  • Point-of-Sale and Internet Purchase Methods
    • Summary analysis
      • Electronic options vs. cash and check at the point of sale
      • Mobile payments at the point of sale
      • Mobile payments made via the internet
    • Purchase methods at the point of sale
      • Table Consumer Purchase Methods at the Point of Sale, 2014
      • Demographic analysis
        • Table Purchase Methods at the Point of Sale, by Demographic, 2014
    • Mobile phone purchase methods at the point of sale
      • Definitional context
      • And the survey says . . . PayPal!
      • Occasional use
      • Demographic analysis
        • Table Use of Leading Mobile Purchase Methods at Point of Sale, by Demographic, 2014
    • Purchase methods via the internet
      • Definitional context
      • And the survey says . . . credit cards! But PayPal is breathing down their necks
        • Table Consumer Purchase Methods on the Internet, 2014
      • Demographic analysis
        • Table Internet Purchase Methods, by Race/Ethnicity and Age, 2014
        • Table Internet Purchase Methods, by Age, Gender, HH Income & Population Density, 2014
  • P2P Usage Trends
    • P2P methods
      • Table P2P Methods Used, 2014
    • Demographic analysis
      • Table P2P Methods Used, by Demographic, 2014
  • Consumer Use of Mobile Financial, Promotional & Shopping Tools
    • Mobile financial & promotional organization tools
    • Mobile shopping tools
    • Overview
    • Mobile financial & promotional organization tools
      • Table Consumer Use of Mobile Financial, Promotional & Shopping Tools, 2014
      • Demographic analysis
        • Table Use of Mobile Financial and Promotional Organization Tools, by Demographic, 2014
    • Mobile shopping tools
      • Demographic analysis
        • Table Use of Mobile Shopping Tools, by Demographic, 2014
  • Mobile Trends and the Unbanked
    • Summary analysis
    • Definitional context
    • Smartphones open the door for financial inclusion
      • Underbanked and AFS users are smartphone enabled
        • Table Percent of Adults That Have Mobile Phone & Smartphone: Unbanked, Alternative Financial Services Users, Underbanked, Banked & Fully Banked, 2014
    • Mobile financial, promotional & shopping tools
      • Table Use of Mobile Financial, Promotional & Shopping Tools: Fully Banked, Underbanked & Unbanked, 2014
    • Mobile banking and mobile payments
      • Table Mobile Banking & Mobile Payment Usage and Usage Frequency: Fully Banked, Underbanked & Unbanked, 2014
    • Mobile payment methods
      • Table Mobile Payment Methods: Fully Banked, Underbanked & Unbanked, 2014
    • Mobile payment methods at point of sale
      • Table Use of Leading Mobile Purchase Methods at Point of Sale: Fully Banked, Underbanked & Unbanked, 2014
    • P2P methods
      • Table P2P Methods Used: Fully Banked, Underbanked & Unbanked, 2014
    • The prepaid connection
      • It's not about the card, it's about the ecosystem
      • Mobile or bust
      • Prepaid and banked status
        • Table Prepaid Card Usage Penetration: Unbanked, Alternative Financial Services Users, Underbanked, Banked & Fully Banked, 2014
      • Prepaid users driving mobile payments
        • Table Mobile Payment in Last 12 Months & Monthly Payment Frequency: Prepaid Card Users vs. Non-Users, 2014
  • Mobile Payments Strategies: Card Associations
    • American Express
      • Payment diversification
      • The Serve digital platform
      • Alternative payments relationships
      • Leveraging the closed loop: a social media advantage?
    • Discover Financial Services, Inc.
      • Alternative payments strategy
      • Contactless reach
      • PayPal: Tremendous potential; slow out of the gate
      • Ariba: eyeing B2B
      • Getting its card in others' wallets
    • MasterCard
      • PayPass gaining global steam; U.S. growth more moderate
      • PayPass explained
      • MasterPass
    • Visa
      • Setting the mobile stage: Visa payWave
      • Visa Checkout: Positioning Visa as online transaction facilitator
      • Bridging physical and virtual
      • Visa Digital Solutions
  • Mobile Payments Strategies: Alternative Payments Providers
    • Amazon Payments
      • Amazon WebPay
      • Drawing from an enormous consumer usage base
        • Table Online Orders at Amazon in Past Three Months, by Demographic, 2014
    • Apple Pay
      • A case for change
      • How it works
      • A promising group of participants
      • Passbook integration
      • The iTunes connection
        • Table Online Orders in Past Three Months: Amazon vs. iTunes Store, by Demographic, 2014
      • The iPhone connection
        • Table Smartphone Users & Top Five Smartphone Brands Used, by Demographic, 2014
    • Google Wallet
      • On the payments side
      • Giving consumers more reasons to use it
    • LevelUp
      • Merchant-driven loyalty credit
      • Adding a payment card
      • Conducting a payment transaction
      • LevelUp security
      • Pricing
      • Partners and relationships
    • Merchant Customer Exchange
      • The veil lifts: CurrentC is here
    • PayPal
      • PayPal: P2P, cards, banking and lending under one roof
      • PayPal Credit
      • Zong
      • Braintree
      • Venmo
      • Usage reach
        • Table PayPal Website Usage/Visits, 2008-2014
        • Table Sending and Receiving Money: How Sent in Past 12 Months, 2008-2014
        • Table Sending and Receiving Money: How Sent in Past 12 Months: Top Five Methods, by Demographic, 2014
      • An ecommerce giant
        • Table PayPal Payment Value: Total, Merchant Services and On eBay, 2011-2013
        • Table Bill Payment Methods: Used Never, Sometimes and Always, 2014
        • Table PayPal Mobile & International Transaction Metrics, 2013
      • Recipe for success: the PayPal digital wallet
      • Connecting at the physical point of sale
      • The Discover network connection
      • On the horizon
    • Square, Inc.
      • Meteoric payment volume growth
      • Bumps in the road
      • Products
      • Foundational products
        • Table Square: Products and Fees, 2014
      • New products
    • Softcard
      • A challenge to the payment networks
    • Starbucks
      • Starbucks takes the barcode route
      • Square partnership-a Square investment
      • The secret to success?
  • Appendix
    • Methodology
      • Consumer survey methodology
    • Market size methodology
      • Mobile POS payments
      • Mobile wallet payments
      • 2013 Federal Reserve Payments Study
    • Report table interpretation
      • Color coding
      • Indexing
    • Terms and definitions
      • Electronic payment system
      • EMV
      • Mobile banking
      • Mobile financial services
      • Mobile payments
      • Mobile P2P
      • Mobile POS
      • Mobile wallets
      • Proximity mobile payment
      • RFID
      • Secure element
      • Smartphone
      • SMS text messaging
      • Tokenization and end-to-end encryption
      • Unbanked, underbanked and alternative financial services users Unbanked

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