Available data suggest that consumer preference for mobile wallets is growing in recent time. This is because of the newfound love for contactless transactions amid the Pandemic. According to PYMNTS' latest data, an interesting fact shows that there is a market leader in almost every category measured: shopping online, shopping in-store, by gender and by generation.
PayPal mobile wallet dominance
- PayPal's mobile wallet powered 28 per cent of in-store mobile transactions compared to Apple pay 15 per cent
- Online, PayPal's mobile wallet peaked at 48 per cent compared to Apple and Google Pay 11 per cent.
PayPal generational dominance
- A quarter of Gen Xers and about a third of millennials, bridge millennials and Gen Z members used PayPal for in-store shopping. Compared to Apple Pay's 20 per cent use with gen Z consumers and Google Pay's 10 per cent with bridge millennials and millennials.
- Forty-three per cent of consumers reported using the PayPal Wallet to shop, compared to 9 per cent who reported using Apple Pay and 9 per cent who reported using Google Pay.
PayPal dominance in terms of usage by affluent customers (those earning more than $150,000 a year)
- Eighteen per cent of affluent customers use PayPal to shop in-store, while 13 per cent of affluent consumers reported using Apple Pay.
- Forty-one per cent of affluent consumers use PayPal for online shopping compared to Apple Pay's 11 per cent.
Since the start of Pandemic, there has been a net increase in the use of debit and credit cards and digital wallets. This is a result of the change in consumer's preference, "as consumers are reconsidering their needs and branching out to new payment experiences that best meet them".PYMNTS
Although PayPal is a dominant force in the market, only time will tell if PayPal's market dominance will continue giving the increased competition in this sector.
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