The mobile revolution continues but to date has yet to include use of the ubiquitous mobile devices as the primary vessels for making purchases at the point of sale. The generally asked question is when widespread adoption of mobile payments will occur. What can be reasonably concluded is that commercial mobile will be following consumer adoption. In this research note, Mercator Advisory Group discusses the factors contributing to the current tepid but growing pace of consumer adoption and how that affects commercial mobile payments. In this research note, The Outlook for Commercial Mobile Payments Mercator Advisory Group details a number of converging factors that suggest how commercial mobile payments may indeed gain faster adoption than many expect.

1. The Outlook for Commercial Mobile Payments
July 2016

2. 2016 Mercator Advisory Group
The mobile revolution continues but to date has yet to include use of the
ubiquitous mobile devices as the primary vessels for making purchases at
the point of sale. The generally asked question is when widespread
adoption of mobile payments will occur. What can be reasonably concluded
is that commercial mobile will be following consumer adoption. In a new
research note, Mercator Advisory Group discusses the factors contributing
to the current tepid but growing pace of consumer adoption and how that
affects commercial mobile payments.
In a new research note, The Outlook for Commercial Mobile Payments,
Mercator Advisory Group details a number of converging factors that
suggest how commercial mobile payments may indeed gain faster adoption
than many expect. One factor is demographics.
New Mercator Advisory Group research examines likelihood
of wide adoption of commercial card mobile payments

3. 2016 Mercator Advisory Group
“The number of millennials entering the workforce is rapidly accelerating: 70% of
adults aged 18 to 34 conducted some form of banking transaction (including
payments) via a mobile phone during 2015 according to Mercator Advisory
Group’s CustomerMonitor Survey Series,” commented Steve Murphy, Director of
Mercator Advisory Group’s Commercial and Enterprise Payments Advisory
Service and author of the report. “This compares to 31% for those between 35
and 65 years of age. This shift in preferences for mobile banking relationships
among younger adults should also contribute to more rapid commercial mobile
payments demand as the near-term point-of-sale environment evolves.”
Steve Murphy
Director,
Commercial and Enterprise Payments
Advisory Service

4. 2016 Mercator Advisory Group
• The current state of mobile payments adoption
• Graphical data from results of Mercator primary research on mobile banking
and mobile payments
• Key momentum builders for commercial mobile adoption
• A point of view on the potential timeline for a tipping point in mass mobile
payment adoption
Highlights of the research note:

5. © 2016 Mercator Advisory Group
One of the 3 exhibits in this research note:
Figure 2: Young Adults Are More Than Twice as Likely as
Older Adults To Do Any Banking by Mobile
Source: Mercator Advisory Group CustomerMonitor Survey Series, Banking and Channels, 2013–2015, Question 56
77%
42%
18%
71%
39%
19%
62%
33%
16%
46%
20%
11%
44%
19%
9%
31%
15%
6%
18 to 34 yrs
35 to 64 yrs
65 yrs +
Banking Information Accessed by Device
(Base = All)
Manage Banking Information by Mobile
70%
31%
10%
62%
27%
8%
46%
22%
6%
44%
17%
7%
39%
17%
4%
26%
12%
4%
18 to 34 yrs
35 to 64 yrs
65 yrs +
By mobile phone
(2015)
By mobile phone
(2014)
By mobile phone
(2013)
By tablet (2015)
By tablet (2014)
By tablet (2013)
Banking Transactions Performed by Device
(Base = All)
Transact by Mobile
©2016 Mercator Advisory Group

6. About the research note:
2016 Mercator Advisory Group
The research note is 10 pages long and contains 3 exhibits.
Companies mentioned in this document include American Express, Citibank,
JPMorgan Chase, and U.S. Bank.
Members of Mercator Advisory Group's Commercial and Enterprise Payments
Advisory Service have access to this research note as well as the upcoming
research for the year ahead, presentations, analyst access and other membership
benefits.
Please visit us online at www.mercatoradvisorygroup.com.
For more information and media inquiries, please call Mercator Advisory Group's
main line: (781) 419-1700; send email to media@mercatoradvisorygroup.
For free industry news, opinions, research, company information and more visit us at
www.PaymentsJournal.com.
Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

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