May 27, 2018 About | Contact | CUNA News [ Log in ]

Article Tools

CUNA Research Reports

CU Snapshot

 Mar '18Feb '18
# of CUs5,5965,757
Total Assets
($ billions)
Total Savings
($ billions)
Net Cap.
Loans to Savings81.5%82.6%
Loan Delinq.0.8%0.9%

         Credit Union Indicators

Mobile Payments Haven't Exploded...Yet

Amid tepid growth, consumers haven't abandoned cash transactions.

Mobile payments are gaining some traction—but very slowly and only with a small number of consumers and retailers, according to a new research paper from the ATM Industry Association.

The paper, "U.S. Mobile Payments: Do They Disrupt Cash?" examines the impact of mobile payments on the growth of cash.

Consumers make only a fraction of total in-store payments with mobile devices, according to the research. During the next five years, to the extent mobile payments takes away from other forms of payment, consumers will decrease electronic payments such as debit, credit, gift, and prepaid cards, rather than cash transactions, the paper concludes.

The paper specifically examines the success of the Starbucks closed-loop solution and the Apple Pay open-loop environment. Although Starbucks boasts a whopping 20% of company-owned, in-store sales through mobile, that number pales in comparison to the transaction value of the 700,000-plus sites that accept Apple Pay.