Home > Mobile Payments, Virtual Goods > Mobile payment user demographics: Myth vs Fact

Mobile payment user demographics: Myth vs Fact

We recently conducted a consumer survey to better understand our customers’ customers. As marketers, the downside to having a frictionless end user payment experience is that we don’t always know a lot about the people making the payments. How old are you? Why did you select the “Pay by mobile” option? Do you even have a bank account? These are the kinds of questions our survey was designed to answer.

Here’s what we learned, in classic “Myth vs Fact” format:

Myth – Mobile payment users are just a bunch of 12 year olds using their parent’s cell phones to make payments.
Fact – Over 88% of mobile payment users are 18 or older. The distribution skews younger with about 60% between 18 and 30 years old.

Myth – Mobile payment users only use mobile because they don’t have bank accounts or credit cards.
Fact - 76% of mobile payment users have a bank account or credit card.

Mobile payment users have plenty of options, which begs the question, “why do you use your mobile phone to pay?”

We’re glad we asked:

34% said they used mobile because “it’s fast and easy”
22% said because “it’s fun”
20% said because “i know it will work”
14% said because “it doesn’t seem like I’m spending real money”
10% said because “i don’t have a bank account or credit card”

Folks, mobile payments are becoming mainstream.
Good stuff.

  1. May 18th, 2009 at 21:53 | #1

    If 76% of mobile payment users have a bank account, this means 24% of them don’t, right?

    Then how come 10% of them said because “I don’t have a bank account or credit card”

    ;)

  2. Michael
    May 18th, 2009 at 23:17 | #2

    Guys, where do you get end-user data? Ok you have phone numbers but how do you get that data you present here?

  3. May 19th, 2009 at 10:19 | #3

    @Michael, Hi. We surveyed 500 US consumers who had recently purchased virtual goods or virtual currency either on a social network, online game or virtual world.

  4. May 19th, 2009 at 10:26 | #4

    @sriram
    The short answer is that with surveys you often have segments of respondents that are not mutually exclusive. In this particular case, the question of “why do you prefer paying with your mobile phone?” was only asked to those respondents who said that mobile payment was their preferred payment option. Therefore, the respondents who said they preferred using mobile payment because “they didn’t have a bank or credit card account” were a subset of a larger population of respondents of whom 24% said they didn’t have a bank or credit card account. Make sense?

  5. May 19th, 2009 at 19:15 | #5

    thanks for the clarification Hill. :)

  6. May 23rd, 2009 at 13:24 | #6

    Hi, nice posts there :-) thank’s for the interesting information

  7. July 4th, 2009 at 03:09 | #7

    I share the same views. Liked your blog very much.

  8. September 3rd, 2009 at 18:15 | #8

    Mobile payment accounts for 76% of mobile users, while “I do not have bank account or credit card” accounts for mobile users to use mobile payment of 10%. It’s that simple.

  9. September 26th, 2009 at 06:37 | #9

    Hi, very interesting post. Thanks for share.

  10. October 5th, 2009 at 01:28 | #10

    Interesting breakdown, I imagined that mobile payments were for younger users (they all have cell’s but not a visa). It’s definitely becoming more mainstream though, I actually feel more secure paying by cell over the internet rather than by credit card.

  11. October 28th, 2009 at 19:16 | #11

    Nice facts and figures… But its a facility which could be useful if we takes it in concept of mobility.

  12. Pragya
    March 3rd, 2011 at 21:59 | #12

    Wow

  1. No trackbacks yet.