US Hispanic Mobile Engagement Trends and Data, Part 1

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Part
01

Mobile Payment Breakdown: Retailers

In the U.S., mobile payments are accepted by more than 50% of brick-and-mortar retailers. What's more, data in general appears to that an increasing number of retailers are accepting mobile payments across differing verticals. In addition to mentioning mobile payments specifically, our research findings below also address contactless payments because mobile payments are a form of contactless payments.

Findings

1. Mobile Payments by Retail Vertical

  • Among quick-serve restaurants in the U.S., 79% have point-of-sale (POS) terminals that are enabled for contactless payments.
  • Among U.S. pharmacies, 77% have POS terminals that are contactless-payment-enabled.
  • Among grocery stores in the U.S., 61% have POS terminals that are contactless-enabled.
  • Mobile payments are accepted by 31% of restaurants, though it was not specified whether that figure included dine-in, quick-service, or both types of restaurants.
  • A survey found that in December 2018, 20% of full-service restaurants in the U.S. accepted the following three types of mobile payments: Apple Pay, Samsung Pay, and Google Pay. Furthermore, that source stated that "restaurants are increasingly accepting digital wallets."
  • With regard to the mobile payment option Apple Pay specifically, approximately 50% of U.S. retailers accepted Apple Pay in 2018. For reference, that figure in 2014 was just 3%.
  • In further regard to Apple Pay, over a million retail stores (including, but not limited to, gas stations, grocery stores, and restaurants) in the U.S. accept such mobile payment.
  • Additionally (with regard to Apple Pay), 65% of retail locations in the U.S. accepted Apple Pay, at the start of 2019. Additionally, Apple Pay is accepted by "74 of the top 100 merchants in the United States."

2. Additional Insights about Mobile Payments in Retail

  • Sales transacted through mobile payments were estimated to account for approximately 40% of ecommerce transactions in 2018 and rising to 53.9% during 2021.
  • In 2018, it was estimated that 55 million U.S. individuals "will use mobile payments" which translates to "20.2% of the [U.S.] population."
  • Research found that mobile payments accounted for just "3% of retail sales."
  • According to the National Retail Federation, 55% of retailers accepted Samsung Pay, 20% accepted Google Pay, and 43% accepted Apple Pay.
  • The National Retail Federation found that among retailers surveyed, over one-third (35%) of retailers responded that "implementing new and emerging digital and mobile payment types was their top overall payment initiative over the next 18 months."
  • This data graph published by Statista demonstrates the volumes of mobile payment types (remote, in-person, and peer-to-peer transfer) between 2014 and 2019. We included that data graph in this Google Doc as well, in case the Statista link doesn't work for some reason.
  • According to the aforementioned Statista data, in 2019, remote mobile payments in the U.S. totaled $90.680 million, in-person mobile payments amounted to $34.16 million, and peer-to-peer transfer mobile payments totaled $16.833 million. For reference, those figures (respectively) in 2018 were $81.349 million, $23.472 million, and $14.428 million. Additionally, those figures (respectively) in 2017 were $72.269 million, $16.240 million, and $11.899 million.

Your Research Team Applied the Following Strategy:

We included all the available data we found about the number of U.S. retailers accepting mobile payments by retail vertical. As was stated above, some of the statistics we found addressed contactless-enabled POS terminals, which we included because mobile payments are a form of contactless payments. The reason we included the "Additional Insights" section of research findings is because data about the breakdown of mobile payment acceptance by retail vertical was limited. Thus, the additional statistics we found illustrate the concentration of mobile payment acceptance and usage within the U.S. All of our research findings pertain to the U.S. market overall, which was necessary because we didn't find a single data point specific to the east coast of the U.S. throughout the entirety of our research. Our sources ranged from media sources such as Reuters, to the database source Statista, and mobile-payment sources such as Mobile Payments Today.
Part
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Part
02

Mobile Payment Barriers

Four barriers to mobile payments for Hispanic consumers in the U.S. based on their high unbanked rates include not having a bank account, the lack of consistent cell service, the lack of a mobile phone or data plan, and privacy concerns. Details on these four barriers are below.

NO BANK ACCOUNT

  • According to the Pew Research Center, the "most significant barrier to mobile payments use for unbanked consumers is poor compatibility with paper checks, their most frequent form of income, and cash, which they use regularly for payments and purchases."
  • In 2017, 14% of Hispanic households in the U.S. were unbanked compared with just 3% of white households.
  • This barrier applies to U.S. Hispanics because based on information from the FDIC, "unbanked and underbanked rates were higher among lower-income households, less-educated households, younger households, black and Hispanic households."
  • Mobile payment rates are "significantly lower among the unbanked." Only about 39% of unbanked smartphone owners have ever made a mobile payment compared with 64% of banked smartphone owners.
  • Being unbanked is a barrier to use because most mobile payment apps require a bank account. Unbanked individuals are not able to provide that information and therefore, cannot use mobile payments at retailers.
  • In addition, cash cannot be easily loaded onto a cell phone and since unbanked consumers often use cash for purchases, this results in a barrier to mobile payment usage.

LACK OF CONSISTENT CELL SERVICE

  • Since U.S. Hispanics are more likely to be unbanked than other Americans, the statistic that unbanked consumers are more likely to suspend or cancel their mobile phone service applies to this demographic and results in a barrier to mobile payments.
  • Even though about 60% of unbanked consumers own a smartphone that has the capability of making mobile payments, unbanked Americans are "nearly twice as likely as banked consumers to suspend or cancel their cellphone plans because of the cost of maintaining coverage."
  • In fact, 41% of unbanked individuals have had to suspend or cancel their mobile phone plans for two or more months and another 25% have had to suspend their mobile phone plans for at least a month.
  • In addition, being unbanked may mean that they are unable to maintain cellphone service, which means they do not always have the capability of making mobile payments, even if they are able to link an app to an account.

NO MOBILE PHONE OR DATA PLANS

  • Sixteen percent of unbanked individuals do not have a cell phone at all, which eliminates mobile payments from being an option at all.
  • Unbanked individuals are also more concerned about "running out of data and text messages." If mobile payment requires data use or the company sends automated text messages, this could be a barrier to mobile payment use for unbanked consumers.
  • Compared with 32% of banked consumers, 48% of unbanked individuals do not have a data plan for their mobile phones, which presents a problem for communicating with a mobile payment provider.
  • In addition, 30% of unbanked consumers reach their data limits "most months" compared with just 15% of banked consumers. Another 17% reach their data limits "some months."
  • The implications of this are that unbanked individuals do not want to run out of data and be unable to access mobile payments, so they don't use mobile payments in the first place.

PRIVACY CONCERNS

  • Unbanked consumers, which include more Hispanics than other Americans, are concerned about identity theft than banked consumers when it comes to adopting mobile payments. In fact, 65% of unbanked consumers cited their concerns over identity theft as a barrier to using mobile payments.
  • In 2017, 30.2% of unbanked consumers said a primary reason for not having a bank account is that they "don't trust banks." This mistrust could also translate to mobile payments and concerns about identity theft.
  • Due to their mistrust of banks, Latinos have been "turning to non-bank financial institutions, like merchant cash advance companies and online lenders," which are less likely to offer mobile payment solutions.
  • Hispanics over the age of 50 are also much more concerned (47%) than white consumers (31%) to be "very concerned" about their privacy online.
  • This represents a barrier to mobile payment adoption because consumers have to connect to the Internet and transfer data online to participate in mobile payments. If Hispanics are unwilling to send sensitive data over the Internet, they will not use mobile payments to conduct purchases.

RESEARCH STRATEGY

We began our research into barriers to mobile payments for Hispanic consumers on the East Coast of the U.S. by searching for formal studies conducted on the subject. To conduct this search, we looked through databases of research providers such as the Pew Research Center, Nielsen, Wharton, Allied Market Research and others. While we were unable to find anything specific to either Hispanic consumers or those living on the East Coast, we were able to find a slightly older (2016) study on mobile payment barriers for unbanked individuals in the U.S.

In the meantime, we turned to mobile payment companies to see if they had conducted segmented research on barriers to mobile payment options. Our idea here was that these companies often provide their survey results to marketers to assist them in targeting underutilized audiences. We searched for data from MobilePaymentsToday, PaymentSource, CreditCards.com, NerdWallet, and others. We found several white papers and statistics, but nothing that was segmented to the granular level of East Coast Hispanics. We did find information on the barriers to mobile payment adoption in general, but it did not provide any insights into barriers for Hispanic consumers.

Finally, we looked through trusted media articles from Forbes, Inc., Business Insider, Fortune, and others to see if we could find any links to formal studies on barriers to mobile payment adoption among U.S. Hispanics. This was unsuccessful as well since articles that referenced barriers to adoption all provided overall barriers rather than those specific to East Coast Hispanics or even Hispanics in general. The only information we found that might prove helpful was that more Hispanics are unbanked or underbanked compared to other American demographics.

This led us back to the initial study we found that discussed mobile payment barriers for unbanked Americans. We decided to follow the lead on Hispanics being more unbanked than other demographics and found a 2017 report from the FDIC that indeed showed that unbanked rates are higher among Hispanic households than among other households. Therefore, we assumed that mobile payment adoption barriers for Hispanics would align with the barriers for the unbanked and we decided to use the barriers mentioned in the 2016 Pew Research Center report as the basis for our findings. To ensure that these barriers are still in existence for unbanked individuals, we did find a more recent article that stated that even though banks and technology companies like PayPal are "working to rectify the problem by offering solutions to the unbanked... banking the unbanked remains an issue in the U.S." So, while the problems related to unbanked individuals using mobile payments are improving, they are still barriers to adoption.
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Part
03

Successful Mobile Payment Engagements

Three brands that have successfully engaged U.S. consumers, and likely Hispanic consumers, are Starbucks, Apple Pay and Western Union, and Google Pay. The details of how these brands have been successful are below.

STARBUCKS

  • According to eMarketer, Starbucks has the most proximity mobile payment users (23.4 million in 2018) of any mobile payment app in the U.S.
  • It is assumed that Starbucks has a high usage rate among Hispanics because based on research conducted by Refuel Agency, Hispanics spend $120.2 billion per year on food and their second-favorite brand is Starbucks (Coke is first).
  • The Starbucks app is an extension of its in-store retail experience and it offers a "clear return for customers."
  • The app offers users a personalized experience in addition to allowing customers to pay with their mobile phones. Not only does it recall users' favorite order, but it also has a geolocation feature that shows where the "closest Starbucks locations are [and] the menu at each location."
  • Customers can order using voice commands or through a messaging feature, which makes it easy to use the app in a variety of ways.
  • A major reason why Starbucks has successfully engaged U.S. consumers is because to participate in the company's Starbucks Rewards loyalty program, consumers are required to pay through the app.
  • According to ZDNet, Starbucks' mobile payment app is a success because of "its ability to combine payments and its loyalty program."
  • Millions of people stop at Starbucks, many of which make daily visits, which gives them a compelling reason to use a payment app for their purchases at Starbucks.
  • One reason this app is so successful is that it is universally accepted at all Starbucks locations. With other mobile payment apps, "acceptance is not ubiquitous and that presents a usage challenge."
  • As eConsultancy stated, "the known ability to use the app at every Starbucks location is no doubt a significant driver of app usage."
  • In addition, customers are able to preorder their drinks and food via the app, which is not currently an option with most mobile payment apps.
  • The ability to order ahead allows customers to skip the line, which "in and of itself is a compelling value proposition."
  • As of November 2018, about 25% of Starbucks orders are made through the app.

APPLE PAY AND WESTERN UNION

  • Based on data from eMarketer, Apple Pay had 22.0 million users in 2018, indicating it is the second-most popular mobile payment app in the United States.
  • Among Hispanics considering the purchase of a smartphone, 50% are considering an iPhone, compared to the second-most popular phone, the Samsung Galaxy (33%). This indicates that Apple Pay, which is automatically installed on iPhones, has a significant Hispanic user base.
  • In 2017, Western Union added Apple Pay to its mobile payment app that would allow users to send money transfers from the United States to "more than 200 countries and territories worldwide."
  • Due to its availability on the iPhone, users can transfer money with just "the touch of a finger with Touch ID," meaning there are no lengthy account forms or the need to fill in address information for each transfer.
  • Western Union stated that user experience was at the forefront of the decision to include Apple Pay as Khalid Fellahi, senior vice president and general manager, Western Union Digital Ventures, stated, "By bringing Apple Pay as a payment method in the U.S... Western Union is delivering an exceptional experience across our mobile platform, allowing our customers to conveniently and reliably move money whenever they please."
  • In addition to the large user base, Western Union became one of the first money transfer services to allow payments to be made from a digital wallet (although many other services allow money to a mobile wallet). This enhanced the user experience by allowing people to engage in a form of payment that wasn't widely available before.
  • Moreover, in 2018, Western Union specifically enhanced its mobile payment app for its Hispanic users by launching a "Spanish language version" to target the nearly one in four millennials that is Hispanic.
  • Western Union made it simple for users to change the language within its payment app, stating: "To use the new multi-language app, consumers can simply toggle between their choice of languages within the app."
  • According to Mike Hafer, Senior Vice President, Marketing and Field Execution, North America, "This new multi-language offering within our mobile app will help make it easier for consumers to use our service in their preferred language."
  • It is likely that Western Union has a high Hispanic user base as approximately $69 billion is sent to Latin American and Caribbean countries from migrants in the U.S., 40% of which is sent to Mexico.
  • The average Mexican migrant sends $300 at a time, 14 times per year "most commonly through a money transfer company such as Western Union."

GOOGLE PAY

  • Google Pay has the third highest user base of all mobile payment apps in the United States, with 11.1 million users in 2018.
  • According to ThinkNow Research, not only Hispanic millennials have "higher levels of engagement than their non-Hispanic peers," they also prefer Android devices over iOS.
  • This data indicates that younger Hispanics are more likely to use Google Pay, which is only available on Android devices, than Apple Pay, which is only available on iOS devices.
  • In addition, in 2018, Google Pay and Android Pay became one entity, meaning even more Android consumers were migrated to the Google Pay app.
  • As such, Google Pay's large user base shows that it has successfully engaged U.S. consumers, including Hispanics.
  • When Google Pay went live in 2017, its primary goals were to "make checkout speedier for mobile users and increase conversions for retailers, by allowing Google users to tap into any payment card a customer has on file with Google."
  • To achieve these goals, Google provided users with the capability to "pay with their Google account across devices, platforms and interfaces" by allowing them to store multiple debit and credit cards on file.
  • Each card is associated with a billing and shipping address that is sent to the merchant with the tap of a finger, making it simple and quick for the user.
  • Moreover, Google partnered with more than 40 payment providers that would allow Google Pay to be integrated with existing merchant payment options.
  • Google Pay also gives users access to various offers and rewards, making it a more personalized experience than with other mobile payment apps.
  • The app itself is designed to be user-friendly in that all necessary information such as recent purchases, rewards, a store finder, and spending tips is available on the home page.
  • On the Cards tab, users are able to "keep all their payment options and benefits neatly organized so they can easily find it at checkout"

RESEARCH STRATEGY

To begin our research into three brands that have successfully engaged East Coast Hispanic consumers in the U.S. with a mobile payment experience. We initiated searches of formal marketing studies through eMarketer, Pew Research Center, and Juniper Research, among others; however, the only data found was related to mobile payment use. We did find information from eMarketer that showed the top three mobile payment apps are Starbucks, Apple Pay, and Google Pay.

We then turned to payment sites such as Pymnts.com, Wirecard, Fime, MobilePaymentsToday, and TSYS, among others. Our idea for this search was to see if payment sites had profiled any mobile payment apps that had received outstanding ratings on customers experience. From this search, we found that Starbucks was repeatedly mentioned as a best-in-class payment app. Upon further investigation, we also discovered that Starbucks is a popular brand among U.S. Hispanics. We therefore inferred that Starbucks has successfully engaged U.S. Hispanic consumers, although we could not pinpoint that engagement to the East Coast. Still, using this assumption, we selected Starbucks as one example of a brand that has successfully engaged consumers.

Since we had found through eMarketer that Starbucks has the top mobile payment app in the United States according to user base, we decided to use that metric as our gauge of success. As such, we then decided to see if Apple Pay and Google Pay, the next two most-popular mobile payment apps according to user base, had significant Hispanic usage. We discovered that Apple Pay is integrated in the Western Union payment app, which is heavily used by U.S. Hispanics. Using this connection, along with data from a telecom research study that showed Hispanics overwhelmingly consider an iPhone when choosing a new smartphone, we assumed that Hispanics are frequent users of Apple Pay and that the app has successfully engaged this demographic. Again, nothing specific could be found for East Coast Hispanics, but we assume that the level of engagement spans the entire country.

Finally, with regard to Google Pay, we came across an article in Hispanic Network Magazine that indicated that Hispanic millennials are more engaged than their non-Hispanic peers and that they prefer Android phones. This seemed to indicate that young Hispanics are using Google Pay more often than other mobile payment apps and that Google Pay has successfully engaged this demographic. Even though nothing we found was specific to East Coast Hispanics, we assumed that the level of Hispanic engagement with Google Pay is not significantly different from region to region.

Once we had identified three successful mobile payment apps according to user base, we then used a variety of articles and reviews from reputable media sources like NPR, ZDNet, Payments.com, Bank Innovation, TechCrunch, and Tech Times, among others to identify reasons why these apps have been successful in engaging consumers. While only Western Union's launch of a Spanish language interface was directly targeted at U.S. Hispanics, the other apps were deemed to have engaged large numbers of Hispanics based on their assumed usage.
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Part
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Fuel Apps

Calculations based on public data on U.S. consumers who pay for gas using mobile apps indicate that approximately 1,969,488 Hispanic consumers in the U.S. use fuel apps when purchasing fuel. The figure is an estimate following calculations involving both the percentage of U.S. consumers using mobile apps to pay for gas and the estimated number of Hispanic households that own vehicles. Below are full details regarding the assumptions and calculations made, including a research methodology explaining the search and triangulation approaches deployed to estimate the figure provided.

GASOLINE PURCHASES USING MOBILE APPS

  • According to a report published by Payments.com, an industry leader in safe online payments and fraud prevention, 49.4% of U.S. consumers use mobile apps for various gas-related needs, including locating the nearest gas station and the hours it operates. However, when it comes to using these apps to pay for gas, only 4.5% of U.S. gasoline customers do so.
  • 22% of consumers who pay for gas with mobile apps “always” make other purchases at the c-store, versus 17% of general gas app users. Generally, an estimated 73% of mobile app users who use apps to pay for gas are more likely to make additional purchases at a c-store.
  • 58% of general gas app users indicated that the availability of price discounts would significantly encourage them to use mobile apps to pay for gas, versus 57% of non-gas mobile app users.

U.S. VEHICLE HOUSEHOLD OWNERSHIP / AVERAGE U.S. HOUSEHOLD PERSONS

  • A different report on the U.S. petroleum industry indicates that in 2016, there were 268.8 million registered vehicles and that Americans are expected to travel 8.993 billion miles per day in 2019.
  • The report further asserted that the average American household had 1.88 vehicles in 2017 and spent approximately $1,968 on fuel and motor oil.
  • A report by Statista notes that in 2018, the average household in the U.S. had approximately 2.53 persons. The census bureau estimated the Hispanic population in the U.S. at 58.9 million people as of July 1, 2017.

ASSUMPTIONS

  • To determine how many Hispanic consumers in the U.S. use fuel apps when purchasing fuel, we first assume that the national figure provided by Payments.com regarding the average percentage of U.S. consumers who pay for gas using mobile apps applies to all consumers in the U.S. regardless of ethnicity.
  • Therefore, to determine that number of Hispanic consumers in the U.S. who use fuel apps when purchasing fuel, it is imperative to determine how many Hispanic households in the U.S. own a car, but first, the census data will help calculate the number of Hispanic households in the U.S.
  • Next, the average number of Hispanic households in the U.S. is multiplied by the average number of cars owned by an American household to establish an estimate of the total number of vehicles owned by Hispanic households.
  • Once the total number of vehicles owned by Hispanic consumers in the U.S. is established, it will be multiplied by the average percentage of U.S. consumers who purchase fuel using mobile apps to establish an estimate of the number of Hispanic consumers paying for gas using mobile apps.

CALCULATIONS AND TRIANGULATIONS

Hispanic Households in the U.S.

  • Hispanic population in 2018 = 58.9 million
  • The average household in the U.S. = 2.53 persons
  • Therefore, Hispanic households in the U.S. in 2018 = 58.9 million ÷ 2.53 = 23.28 million households.

Hispanic Consumers That Own Cars

  • Hispanic Households = 23.28 million
  • The average American household had 1.88 vehicles in 2017
  • Therefore, in 2018, Hispanics had an estimated: 1.88 x 23.28 = 43.7664 million vehicles.

Hispanic Consumers That pay For Gas Using Mobile Apps

  • 4.5% of U.S. gasoline customers pay using mobile apps.
  • Hispanic consumers own an estimated 43.7664 million vehicles
  • The estimated number of Hispanic consumers in the U.S. who use fuel apps when purchasing fuel will be — 4.5% of 43.7664 million Hispanic consumer vehicles. Thus, (4.5% ÷ 100) x 43.7664 = 1.969488 million Hispanic consumers
  • In this regard, it is estimated that approximately 1,969,488 Hispanic consumers in the U.S. use fuel apps when purchasing fuel.

RESEARCH STRATEGY

Extensive searches across automotive-related databases and online payment solution databases featured data about the average U.S. consumers who pay for fuel using mobile apps. These reports and the many we explored did not provide a demographic breakdown of U.S. ethnic groups that pay for fuel using mobile applications. Thus, we decided to establish the number of Hispanic households that own vehicles, and then determine 4.5% of Hispanics as the number representing those who pay for fuel using mobile apps. The assumptions, calculations, and triangulation approaches above explain the methodology we used to arrive at the estimate.
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Part
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Mobile Payment Users

The typical mobile payment user in the US lives in the metropolitan area, is banked, and is either married or single. Only 11% of people in the US use mobile payment frequently, while 24% use mobile payment sometimes.

Demographics of Mobile Payment Users in the US

  • The typical mobile payment user in the US is banked, with over 91% banked compared to 9% that are unbanked.
  • The percentage of mobile payment users in the US that are male is 47%, while the female percentage is 53%.
  • The majority of those who use mobile payment in the US are married. The breakdown of the marital status of mobile payment users in the US are as follows: Single (32%), Married (55%), Divorced (10%), and Widowed (3%).
  • The percentage of mobile payment users that are employed is 70%, while 6% are unemployed and 24% are not in the labor force.
  • The breakdown by race of mobile payment users in the US is as follows: White (63%), African American (14%), Hispanic (16%), and other race/ethnicity (7%).
  • The breakdown by income of mobile payment users in the US is as follows: income less than $15,000 (10%), $15,000 to $24,999 (8%), $25,000 to $49,999 (25%), $50,000 to $74,999 (17%), $75,000 to $99,999 (15%), and $100,000 or more (24%).
  • In terms of education, the breakdown of mobile payment users in the US is as follows: Less than high school (8%), High school (31%), Some college (25%), College (23%), and Postgraduate (13%).
  • The breakdown by age/generation of mobile payment users in the US is as follows: Millennials (ages 18-34) (39%), Generation Xers (ages 35-50) (33%), Baby boomers (ages 51-69) (24%), and Silent generation (ages 70-87) (5%).
  • The breakdown by region of mobile payment users in the US is as follows: Northeast (18%), Midwest (20%), South (36%), and West (26%).
  • The majority (85%) of those who use mobile payment in the US live in a metropolitan area, compared to 15% that live in a non-metropolitan area.

Rate of Mobile Payment Usage

  • The 2018 National Financial Capability Study in the US found that 35% of people in the US use mobile payment at the point of sale, with 11% using it frequently, as against 24% that use it sometimes.
  • The breakdown by region of the percentage of people in each region in the US who use mobile payment frequently are as follows: New England (12%), Middle Atlantic (11%), East North (10%), Central West (10%), North Central (12%), South Atlantic (11%), East South Central (13%), West South Central (10%), and Mountain Pacific (12%).
  • The breakdown by region of the percentage of people in each region in the US who use mobile payment sometimes are as follows: New England (23%), Middle Atlantic (25%), East North (21%), Central West (21%), North Central (24%), South Atlantic (23%), East South Central (26%), West South Central (23%), and Mountain Pacific (27%).
  • The percentage of those aged 18-34 that either uses mobile payment frequently or sometimes is 53%.
  • The percentage of those aged 35-54 that either uses mobile payment frequently or sometimes is 40%.
  • The percentage of those aged 55+ that either uses mobile payment frequently or sometimes is 17%.
  • The percentage of those earning less than $25,000 that either uses mobile payment frequently or sometimes is 32%.
  • The percentage of those earning $25,000 to $75,000 that either uses mobile payment frequently or sometimes is 34%.
  • The percentage of those earning more than $75,000 that either uses mobile payment frequently or sometimes is 40%.
  • The percentage of Whites that either uses mobile payment frequently or sometimes is 29%.
  • The percentage of African Americans that either uses mobile payment frequently or sometimes is 49%.
  • The percentage of Hispanics that either uses mobile payment frequently or sometimes is 48%.
  • The percentage of Asian Americans that either uses mobile payment frequently or sometimes is 47%.
  • The percentage of Other Ethnic Groups in the US that either uses mobile payment frequently or sometimes is 32%.

Your Research Team Employed the Following Methodology:

To find understand the typical mobile payment users in the US, and how often do they use mobile payment, our research team searched for as much demographic data as available from nationally representative studies and reported on as much demographic data as available. We tried to find as much breakdown of the various demographic data requested and as such had to also rely on data that is a year older than the typical Wonder standard of not more than two years in some cases.
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Part
06

Mobile-Only Loyalty Programs

Starbucks modified its rewards program and introduced it in their all-new mobile app which saw a 14% jump in US membership to 16.3 million during its fiscal first quarter of 2019.

STARBUCKS MOBILE REWARDS PROGRAM

WHAT DID THE BRAND DO?
  • Starbucks modified its rewards program and introduced it in its brand new mobile app.
  • One of the biggest draws of the Starbucks app is the ability to order ahead and skip the line. This ties into one of the reasons why reward programs are so compelling.
  • The UI (user interface) of the Starbucks app is another reason why their loyalty program has been so successful. The beautiful app design allows users to clearly see their points, rewards, and membership status. Users can even see how far away they are from achieving their next reward, further motivating them to spend.
  • When an app is easy to use, like the Starbucks app, it eliminates friction and accelerates the buying process.
  • Starbucks' digital initiatives appear to be paying off with a surge in rewards members and strong same-store sales growth.
  • The loyalty program lets members earn "stars" that can be redeemed for free food and drinks.
SUCCESS METRIC
  • Starbucks Rewards, the coffee chain's loyalty program, saw a 14% jump in US membership to 16.3 million during its fiscal first quarter of 2019 compared with the prior quarter.
  • The gain of 1 million members was the biggest in three years as Starbucks has expanded the features of its mobile app to emphasize customer convenience.

DUNKIN' DONUTS MOBILE REWARDS

WHAT DID THE BRAND DO?
  • In 2014, the coffee house chain initiated a revamp of its loyalty strategy. The program included upgrading a typical reward from a free medium beverage to a free, any-size beverage, as well as adding new features to the app, such as the ability to share rewards and to sign up for auto-recharge.
  • The DD Perks Rewards loyalty program, which was introduced nationwide in January 2014, is fully integrated into the app.
  • Members earn five points for every dollar they spend on qualifying purchases at Dunkin’ Donuts when they pay via the Dunkin’ Mobile App.
  • The DD Perks program was designed to provide customers with new levels of speed and convenience.
SUCCESS METRIC
  • In a reflection of the growing importance of mobile loyalty to quick-serve restaurants, Dunkin’ Donuts' program had signed up 2 million members, while the chain’s mobile payment and gifting application has surpassed more than 10 million downloads.
  • On-the-go mobile ordering became a popular feature of its DD Perks loyalty program, which grew 33% to 8 million members last year.
  • The mobile ordering feature was used more than once by 80% of its DD Perks members, the company reported.

DOMINO'S PIECE OF PIE REWARDS PROGRAM

WHAT DID THE BRAND DO?
  • In 2015, Domino’s Pizza introduced their groundbreaking Points for Pies campaign which allowed users to earn points by uploading a picture of any pizza to the app. The more pizza customers uploaded, the more points they got; the more points they got, the closer they got to free pizza.
  • This particular strategy kept the consumer cycle going and generated quite a bit of buzz.
  • Although more of a PR stunt than anything, it was indicative of the type of innovation Domino's mobile strategy is headed towards.
SUCCESS METRIC
  • Over 20 million people loved it so much, they joined Domino’s Pizza’s Piece of the Pie Rewards program.
  • This staggering number is proof that a solid loyalty program and a quality mobile app can scale quickly when executed correctly.
  • Now, roughly 65% of Domino’s orders are placed digitally.
  • Jenny Fouracre, director of public relations at Domino’s, said that roughly half of its digital sales come through mobile channels.

RESEARCH STRATEGY

To find out information on brands engaging consumers on the East Coast of the United States and highlight any data specific to US Latino consumers, the research team, first, sought to identify where this group of consumers most likely shopped, to identify if any niches informed the research. The idea here was to check the list of the brands and then dig deep into those brands to find out if they have introduced any mobile loyalty programs specifically focused on this group. We located a list of brands; then, checked if these brands had introduced, recently or in the past, mobile loyalty programs specifically focusing on US Latinos. However, upon reviewing these and many such brands and checking their published reports, blogs, and websites, we were unable to find any information on any such loyalty mobile-based programs for Latinos focusing on the East Coast.

We then checked for news and interviews on the subject through news portals like CNN, The New York Times, and USAToday, among others, to find out Latino shopping trends in the United States. We searched for news and interviews from industry experts on Latino shopping trends. However, upon scanning regional as well as national news and interviews, we could not cite any such trends that could be used to present the data. We also scanned local and East Coast state-specific channels for articles that covered areas like New York, Florida, New Jersey, Delaware, Maryland, Virginia, and North Carolina, among others. We considered this approach as generally any such trends on the rise are covered by regional news outlets. However, no relevant data was found.

Next, the team checked for case studies on how marketers are targeting US Latinos with a little hope that the studies include or are focused on the East Coast area. Through these studies, we wanted to derive the results based on the outcome of the study. Even if the data was derivative, like marketers keeping Latinos engaged through mobile apps such as Instagram or Facebook, we could have presented those outcomes as a possible way that marketers attracted this group of shoppers. However, upon checking for case studies we came across many on Latinos and shopping in portals like the Think with Google marketing research case study and a study by Viantic on how to engage Latinos through shopping on social media, but we were unable to find any such case studies that had relevant outcomes. We then expanded our scope to overall US consumers and were able to find three brands that have successfully engaged US consumers with a mobile-only loyalty program.
Sources
Sources

From Part 03
From Part 04
Quotes
  • "Nearly 43 percent of consumers that use apps during a gas station run cite convenience as a major factor. Additionally, loyalty and price discounts are also of high importance to consumers."
  • "Of consumers who use mobile apps to pay for gas, 73 percent say they are likely to shop at the facility’s convenience store, and 82 percent want a mobile app experience that will let them pay for c-store items."
Quotes
  • "There were 268.8 million registered vehicles in 2016. (Source: Statista) Americans travelled 8.848 billion miles per day in 2018 and are expected to travel 8.993 billion miles per day in 2019. "
  • "U.S. gasoline demand in 2018 decreased slightly to 9.31 million barrels/day, approximately 390 million gallons/day, or about 39 million fill-ups/day (based on a 10-gallon fill-up). (Source: U.S. Energy Information Administration, Short-Term Energy Outlook, February 2019)"
Quotes
  • "Consumers continue to prefer debit for daily purchases at the gas station, supermarket and discount store. Credit continues to be the preferred way to pay at department stores, most likely due to people preferring credit for highervalue purchases."
  • "Smartphones increasingly offer the ability to help consumers accomplish many tasks while on the go, anytime and from anywhere. Yet, a majority of consumers do not yet leave home with just their mobile phone to complete their daily purchases at the gas pump, restaurant or grocery store."