SOURCE: Kantar Worldpanel ComTech

Kantar Worldpanel ComTech

June 03, 2015 07:57 ET

Kantar Worldpanel: Adoption of Apple Pay Not Hindered by Lack of Trust or Understanding

In the Smartphone Market: Android OS Gains Share in the US but Continues to Struggle in Europe

NEW YORK, NY--(Marketwired - Jun 3, 2015) - With Google's recent launched of Android Pay, and Apple rumored to be announcing some new incentive practices for Apple Pay at their developer conference next week, it's clear we can expect more activity in this space. According to the latest data from Kantar Worldpanel ComTech, in March 2015 only 7% of Android users surveyed in the US said they used NFC/mobile payment. Google Wallet has been around since 2010, and any Android device with NFC capability can access it for payments. It will be replaced by Android Pay, which offers a user experience much more like Apple Pay.

Apple Pay hit the market in October, just after the launch of the iPhone 6 and 6Plus. While these devices are still in their infancy and have not reached their full market penetration potential with a current penetration of 14% and 5% respectively, we can start to see the opportunities for Apple Pay. Among iPhone 6 and 6Plus owners in the US, 13% have used Apple Pay, and 11% are planning to do so. Lack of trust and knowledge do not play a major role as reasons not to use it. Only 2.6% said they did not use Apple Pay because they do not trust it, and only 4.1% said they did not use it because they do not understand how it works. Eleven percent said they did not use it because their credit cards work just fine, and 58% just answered "no" without adding any more detail.

As is often seen with new technology products and services, the age of the customer plays a strong role in adoption. "As we looked across the various groups of respondents, the highest number of users falls in the 25- to 34-year-old category, followed by 16- to 24-year-old group," noted Carolina Milanesi, chief of research at Kantar Worldpanel ComTech. "Surprisingly, Smartphone users over 50 had the highest share of 'no' responses, and also the highest number of those indicating an intention to use mobile payments in the future."

More details about Kantar's data surrounding the current mobile payments market can be found at: www.kantarworldpanel.com/global/News/Apple-Pay-Not-Hindered-by-Lack-of-Trust-or-Understanding

In the wider smartphone market, the latest sales data for the three months ending in April shows Android gaining market share in the US, increasing to 62.4%, but continuing to struggle in Western Europe (Great Britain, Germany, France, Italy, and Spain), where it dropped to 70.5%.

"Samsung's new flagship products became available in April, and while sell-in numbers were already positively impacted in the first quarter, having product in stores for less than a month was not enough to make a significant difference in sell-through," Milanesi reported. "Samsung's share of the smartphone market grew in the US, France, Germany, and Italy, but we are not in a position to say that the new models have been the ones fueling the growth."

Additional data and insights can be accessed at: http://www.kantarworldpanel.com/global/News/Android-Needs-Hero-Flagship-Device-To-Regain-OS-Market-Share

About Kantar Worldpanel
Kantar Worldpanel is the world leader in consumer knowledge and insights, based on continuous consumer panels. Its High Definition Inspiration™ approach combines market monitoring, advanced analytics, and tailored market research solutions that inspire successful actions by its clients. Kantar Worldpanel's expertise about what people buy or use -- and why -- is recognized by brand owners, retailers, market analysts, and government organizations globally. For additional information, visit: www.kantarworldpanel.com.
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