White paper explores effects of mobile on cash transactions

August 19, 2015

SIOUX FALLS, S.D. (8/19/15)--Mobile payments are gaining some traction--but very slowly and only with a small number of consumers and retailers, according to a new research paper from the ATM Industry Association (ATMIA).  

The paper, “U.S. Mobile Payments: Do They Disrupt Cash?” examines the impact of mobile payments on the growth of cash. 

Only a fraction of total in-store payments are made using mobile devices, according to the research. Over the next five years, to the extent that mobile payments do take share from other forms of payment, it will be from electronic payments, rather than cash transactions, the paper concluded.

Mobile payments compete with cash transactions, as well as debit, credit, gift, and prepaid cards. Therefore, competition within these various electronic forms is a key consideration.

The paper examines the success of the Starbucks closed-loop solution and the Apple Pay open-loop environment. Although Starbucks boasts a whopping 20% of company-owned, in-store sales through mobile, that number pales in comparison to the transaction value of the 700,000-plus sites that accept Apple Pay.