Mobile payments on the rise — and not just among millennials
Bank of America has published its most recent Consumer Spending Snapshot. Here are a few key findings from the July data:
Overall spending and trends
- overall spending per active account remained flat year over year, however transaction volumes per active account increased 3 percent;
- year-over-year online spending and transaction volumes grew 12 percent and 27 percent, respectively, while point-of-sale spend decreased 2 percent and transactions remained flat; and
- average transaction amounts declined across all payment methods. Average online purchases dropped 12 percent, point of sale decreased 2 percent and mobile wallet fell 8 percent.
Mobile wallet adoption
- mobile wallet represents less than 1 percent of all transactions, but is growing rapidly. Year over year, transactions increased three-and-a-half times per active account (240 percent) and spend per active account increased threefold (220 percent);
- generationally, mobile wallets saw 267 percent growth among millennials and 252 percent growth among Gen X;
- on a year-over-year basis, millennials made nearly four times more transactions using a mobile wallet and spent 3 times as much; and
- year over year, Gen X made three-and-a-half times more transactions and spent more than three times as much using mobile wallets. Gen X made 61 percent more mobile wallet purchases than did millennials, but they only spent 3 percent more using that payment method.