“Our latest survey shows planned use of Apple Pay has been on an upward trajectory since it became available six months ago — with the service helping to spark consumer demand for mobile payment technologies,” Andy Golub, 451 survey research director, said in a statement. “Although consumer perceptions of security remain an issue, the results point to marked improvements in this area.”
One-quarter (25%) of smartphone owners say they are likely to use mobile payment apps over the next 90 days (11% very likely and 14% somewhat likely), the research firm’s March survey of North American consumers found. The percentage of consumers likely to use a mobile payment app in the next quarter is up 1 percentage point from a December survey and 6 points from a year ago.
Apple iPhone owners are more than twice as likely to use mobile payment apps (34%) as people with Google (NASDAQ:GOOGL) Android smartphones (16%), 451 Research said.
Apple Pay is the top mobile payment application consumers plan on using. Among people planning to use mobile payment apps, 45% selected Apple Pay, up from 40% in December.
EBay‘s (NASDAQ:EBAY) PayPal is second with 28% of mobile payment users, down from 32% in December. Google Wallet is a distant third with 13%, up from 11% in December.
“In the wake of Apple’s entrance, Google and PayPal have made significant acquisitions, while players such as Facebook (NASDAQ:FB) and Samsung are rolling out payment products to remain competitive,” 451 analyst Jordan McKee said in a statement.
Another good sign for Apple Pay is its lead in customer satisfaction. Among Apple Pay users, 66% are “very satisfied” with the service. That compares with 45% for PayPal and 33% for Google Wallet, 451 Research said.
But security remains a concern.
One in four respondents (24%) say mobile payments are more secure than traditional credit cards, while 27% say they’re less secure.
Apple Pay could get another boost starting Friday when Apple launches its smartwatch, the Apple Watch, in nine countries. Making retail payments with the wave of a wrist is seen as a key selling point for the wearable device.
But Apple Pay has had some glitches. A survey last month indicated that two-thirds of Apple Pay users have had problems using the payment service at checkout.