As the holiday season continues and the frequency of payments spikes, understanding how and where consumers use different payment devices is invaluable to both merchants and issuers alike, helping assist in customer service, authorization, and fraud strategies. In this three part blog series, Javelin identifies key spending metrics for the in-store, online, and mobile channels, as well as methods of improving the frequency and value of a payment method with practical methods for issuers and merchants to determine how to balance their payment strategy this holiday season and through 2019.

Mobile payment preference will require further definition in 2019 as multiple ways of making mobile payments is expanding. Currently 36% of consumers use mobile payments in some way with stored value prepaid soon coming into the top 3 position of payment selection. Merchants are increasingly enabling consumers to add and load prepaid cards into the mobile applications. The gift cards that are given as gifts this holiday season can easily be added to the mobile application and will increase the rate of usage. The days of the gift card lost in the desk drawer are short lived.

Strategic Insights
Mobile payments might be the newest retail payments channel, however 36% of consumers have started using mobile payments as frequently as they use e-commerce. This is a significant amount of transactions and may be part of the reason why e-commerce payments are not higher. Consumers split time between browser based and mobile payment applications.

The majority of consumers, 64%, have not found a reason to use mobile payments to make purchases. The top reasons for lack of usage is the concern about payment security and not seeing a benefit to shopping in the existing e-commerce and POS channels.1 Having technology days in branch will help provide consumers with greater understanding of how mobile payments work and the benefits of using the payment method.

The frequency and dollar amount purchased with mobile payments is consistent with how people pay for goods and services in an e-commerce browser, for now. The dollar amount may start to fluctuate as more businesses see the value of having an integrated mobile experience and build more immersive experiences that solve every day challenges consumers face. An important component to adding new payment methods into the mix is moving from perceived value to actual benefits.


1Javelin Strategy & Research, September 2018, Mobile Wallet Wars: A Battle for Consumer Loyalty





About Krista Tedder

Krista Tedder is an experienced thought leader in the payments industry working with issuing and acquiring financial institutions, merchants, and payment service providers. She advises clients on how to move from foundational to transformational payment practices to improve consumer satisfaction while increasing profitability. Krista provides strategic consulting on core technology providers and methodologies, emerging technologies, and product marketing functions for payments, including market assessments, go-to market strategies, and content marketing strategies.

Krista’s experience crosses all payment verticals of the past 20 years — from merchant, consumer (debit, credit, prepaid, mortgage), and processor (acquiring and issuing), to brand networks. Her experience in various management roles at Bank of America, First Data, Mastercard, and fintechs brings a holistic point of view to payment research. She has given numerous presentations at conferences globally — BAI Retail Delivery, Card Forum, Mastercard Global Risk Leadership, World Credit Union Conference, and others.

Krista holds a Bachelor of Arts degree from York College of Pennsylvania with a focus on communications and education. Ongoing education and certification in product management, product development, and marketing enable Krista to articulate business challenges and opportunities to Javelin Strategy clients within the Payments Practice.

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