Only one per cent of retail payments are made with a smartphone

Do you pay for goods in stores with your smartphone? If so, you’re in the minority. According to Javelin Strategy & Research’s new Mobile Proximity Payments Forecast 2015 report, while 9 per cent of online transactions are currently made on a smartphone, mobile proximity payments - that is using your smartphone to buy something in a brick and mortar store - account for just 1 per cent of all retail transactions.

Apple users lead the way when it comes to mobile proximity payments, with almost 16 per cent having made at least one purchase in a month. That’s nearly double the rate of Android smartphone owners.

iOS users also spend more, having made a median $20 (£12) purchase compared to $15 (£9) for Android owners.

Paying for goods in store with your smartphone is set to increase in popularity in the coming years (and smart watches will provide another way to make such payments). Javelin Strategy & Research forecasts that by 2019 mobile proximity payments will total $54 billion (£35 billion).

"Power has shifted to the consumers with smartphones, and vendors must adapt and respond in new ways," say Daniel Van Dyke, Mobile Research Specialist at Javelin Strategy & Research. "The merchant’s own app can be used to offset competitors’ shopping apps, by using targeted rewards, discounts, and loyalty points".

Do you use your smartphone to pay for goods in store?

Image Credit: Hasloo Group Production Studio / Shutterstock