This story was delivered to BI Intelligence "Payments Briefing" subscribers. To learn more and subscribe, please click here.Several major mobile wallets announced updates in North America this week that will broaden their audience and acceptance network.An update to Android Pay will reportedly give users information about the location of the NFC chip in their phone, according to a teardown by Android Police. This information, which will be accessible through the apps overflow menu, will make it easier for users to figure out what part of their phone must be tapped to the point-of-sale (POS) terminal in order to make a payment. That could eliminate friction for first-time users unfamiliar with contactless payments, which in turn would improve the overall wallet experience and make Android Pay a stickier product.QuickPass, China UnionPays HCE-based mobile wallet for Android users entered the North American market this week when it launched in Canada on Tuesday. The wallet, which allows UnionPay customers to spend contactlessly, will now be accepted at a number of Canadian daily spending merchants. For context, 70,000 Canadian merchants already accept UnionPay cards. Adding support for UnionPay could help grow Canadas mobile wallet ecosystem and familiarize more users with contactless payments.PNC, the ninth-largest US bank by assets, added support for Microsoft Wallet, Windows Phones mobile wallet, according to MS Power User. Now, credit card customers of PNC will be able to make contactless payments on their Windows Phone. Windows Phone held just 2.9% of the US smartphone market in Q4 2015, a number that fell 50 basis points year-over-year (YoY) and could continue to go down, which means that PNCs support likely wont impact many customers. But adding support for new wallets could make more US users and merchants familiar with mobile wallets, which could help accelerate lagging adoption.Mobile payments are becoming more popular, but they still face some high barriers, such asconsumers' continued loyalty to traditional payment methods and fragmented acceptance among merchants. But as loyalty programs are integrated and more consumers rely on their mobile wallets for other features like in-app payments, adoption and usage will surge over the next few years.Evan Bakker, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile payments that forecasts the growth of in-store mobile payments in the U.S., analyzes the performance of major mobile wallets like Apple Pay, Android Pay, and Samsung Pay, and addresses the barriers holding mobile payments back as well as the benefits that will propel adoption.Here are some key takeaways from the report:In our latest US in-store mobile payments forecast, we find that volume will reach $75 billion this year. We expect volume to pick up significantly by 2020, reaching $503 billion. This reflects a compound annual growth rate (CAGR) of 80% between 2015 and 2020.Consumer interest is the primary barrier to mobile payments adoption. Surveys indicate that the issue is less the mobile wallet itself and more that people remain loyal to traditional payment methods and show little enthusiasm for picking up new habits.Integrated loyalty programs and other add-on features will be key to mobile wallets taking off. Consumers are showing interest in wallets with integrated loyalty programs. Other potential add-ons, like in-app, in-browser, and P2P payments, will also start fueling adoption. This strategy has been proved successful in China with platforms like WeChat and Alipay.In full, the report: Forecasts the growth of US in-store mobile payments volume and users through 2020.Measures mobile wallet user engagement by forecasting mobile payments' share of their annual retail spending.Reviews the performance of major mobile wallets like Apple Pay and Samsung Pay.Addresses the key barriers that are preventing mobile in-store payments from taking off.Identifies the growth drivers that will ultimately carve a path for mainstream adoption.To get your copy of this invaluable guide, choose one of these options:Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIPPurchase the report and download it immediately from our research store. >> BUY THE REPORTThe choice is yours. But however you decide to acquire this report, youve given yourself a powerful advantage in your understanding of how mobile payments are rapidly evolving.Join the conversation about this story
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