“As retailers switched to contactless systems, customers could increase how often they paid with wallet apps and form habits around the technology,” said Insider Intelligence senior analyst Jaime Toplin. “These shifts grew spend per user, since consumers could more easily incorporate mobile wallets into their daily routines and became more comfortable buying a wider variety of items with the technology.”
Despite rapid adoption of mobile payments during the pandemic, there are two key issues preventing more pronounced growth. First, many consumers, especially older ones, can find it difficult to set up and use a mobile wallet app. Those who do often don’t use it consistently. Second, some small businesses still can’t accept mobile payments. The hardware and software needed can be expensive for some small and medium-sized businesses (SMBs).