Can Pay-by-App Compete With Pay-by-Phone?

The largest retailers are trying to get consumers to bypass the more popular digital wallets and make payments directly through mobile apps. Consumer preferences, regulatory agencies, emerging technologies, payment incumbents, and merchant interests collide at the point of purchase, with each exerting some control over the future of payments. 

This Javelin Strategy & Research report looks at the emerging battlefront of consumer payments, how consumers currently prefer to pay, and how merchants and retailers would like to shift that behavior toward payments that are captured in branded apps. But will consumers use those apps? And can merchants and others influence consumers effectively? The short answer: not yet.

Key questions discussed in this report: 

• To what degree can merchants incentivize customers to pay through their branded apps and bypass the more popular mobile wallets? 
• What effects will emerging payment technologies have on consumers’ choice of payment vehicles? 
• What is the outlook for consumers’ payment preferences?

Companies Mentioned: 

Alaska Airlines, Amazon, Amazon, Apple, Chick-fil-A, Google, Kroger, Mastercard, McDonald’s, Safeway, Starbucks, Target, Visa, Walmart