Apr 9, 2019

The U.S. is out of step with the rest of the world on mobile payments

Expand chart
Adapted from CivicScience; Chart: Andrew Witherspoon/Axios

Despite well-documented pushes by Apple, Samsung and others into the mobile payments space, more Americans still write checks than use mobile payments.

The big picture: The U.S. is growing increasingly out of step with the rest of the world. By 2022, mobile payments from companies like Alipay, WeChat Pay and others are projected to account for nearly 50% of global e-commerce sales.

Where it stands: Mobile payment transactions in China rose to nearly $13 trillion in just the period from January to October last year, according to official figures from the Ministry of Industry and Information Technology cited by the South China Morning Post.

  • Nearly 75% of supermarkets and convenience stores in Singapore, Malaysia and Thailand now accept mobile payments, a recent Nielsen survey shows.
  • Among online shoppers in countries like Italy, Spain and France, PayPal is growing faster than Mastercard and Visa among online shoppers.

The U.S. saw less than 1% of China's total, at $49.3 billion in estimated total mobile payment transactions, according to data from eMarketer.

Why it's happening: Debit and credit cards continue to dominate Americans' wallets. John Dick, CEO of CivicScience, says it really comes down to trust.

  • "Americans have long-standing faith in the banking system and much less so in Big Tech. When we've surveyed people on this topic before, U.S. consumers trust their banks more than digital solutions by over 6-to-1. And that gap has widened since 2017." 
  • "While carrying paper money around is an inconvenience, people feel safer with a bank-provided card than Silicon Valley-provided app." 

The bottom line: There's a clear opportunity here. Apple appears to be trying to close the trust gap through its new Apple Card with Goldman Sachs.

Go deeper: Facebook's big bet on mobile payments

Go deeper

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 665,164 — Total deaths: 30,852 — Total recoveries: 140,225.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 3 a.m. ET: 124,665 — Total deaths: 2,191 — Total recoveries: 1,095.
  3. Federal government latest: President Trump announces new travel advisories for New York, New Jersey and Connecticut, but rules out quarantine enforcement. Per the CDC, residents of those states must now "refrain from non-essential domestic travel for 14 days," with the exception of critical infrastructure industry workers.
  4. State updates: Alaska is latest state to issue a stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month and has moved its presidential primary to June 23. Some Midwestern swing voters who backed Trump's handling of the virus less than two weeks ago are balking at his call for the U.S. to be "opened up" by Easter.
  5. World updates: In Spain, over 1,400 people were confirmed dead between Thursday to Saturday.
  6. 🚀 Space updates: OneWeb filed for bankruptcy amid the novel coronavirus pandemic.
  7. Hollywood: Tom Hanks and Rita Wilson have returned to U.S. after being treated for coronavirus.
  8. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Coronavirus updates: Global death toll tops 30,000

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

The novel coronavirus has now killed more than 30,000 people around the world — with Italy reporting over 10,000 deaths, per Johns Hopkins data.

The big picture: The number of deaths from COVID-19 in the U.S. surpassed 2,000 on Saturday. The United States leads the world in confirmed coronavirus infections — more than 124,000 by early Sunday. The number of those recovered from the virus in the U.S. passed the 1,000-mark on Saturday evening.

Go deeperArrowUpdated 3 hours ago - Health

Gilead expands access to experimental coronavirus drug in emergency cases

Photo: Olivier Douliery/AFP via Getty Images

Gilead Sciences CEO Daniel O’Day said in an open letter Saturday the company is expanding access to its experimental anti-coronavirus drug remdesivir to include severely ill COVID-19 patients.

The big pig picture: President Trump has called the antiviral drug "promising," but the results of six clinical trials on this investigational medicine are still being conducted, so its effectiveness the treatment of the novel coronavirus has yet to be proved. The World Health Organization is involved in the tests.

Go deeperArrow3 hours ago - Health