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United States

Mobile Commerce Clusters

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Mobile Commerce Clusters
Measures partnerships among banks, mobile networks, and governments.
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Environment

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Environment
Measures economic, technological, and demographic factors within a market.
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Infrastructure

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Infrastructure
Measures the sophistication and penetration of the mobile phone industry and NFC terminalization.
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41.5

Consumer Readiness

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Consumer Readiness
Measures how familiar with, how willing to use, and how frequently consumers are currently using all three types of mobile payments.
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Financial Services

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Financial Services
Measures the effectiveness and penetration of consumer financial products.
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Regulation

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Regulation
Measures legal and regulatory structures and how they affect businesses.
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Summary

The United States, with its final score of 41.5, is the great exemplar of one of the key findings of the MasterCard Mobile Payments Readiness Index: Scale matters. The rider to this conclusion, however, is just as important: While scale matters, it can't determine readiness. It's neither a necessary nor sufficient condition. US consumers remain, roughly speaking, more aware of mobile payments than they are able to execute them.

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What you need to know:

Usage, familiarity, and willingness skew to young, affluent males
M-commerce leads the three payment types in early adoption
50% of consumers with income above $100K show willingness to use m–commerce

Country Overview

Market Forces

The advantages of the US market are many: Highly developed and cost–efficient telecommunications, a diverse financial services infrastructure, and a population very interested in and willing to respond to innovation: America is notoriously the home of technological innovation, and average household expenditure in the United States, to take a broad metric, is more than $33,000 per annum, nearly 15 percent ahead of Australia, its nearest rival in this metric. So why (with the vital exception of m-commerce) aren't US consumers using mobile payments more?

Isis and Google Wallet do much to boost the United States' mobile readiness score.

Consumer Sentiment

In terms of key behaviors (as opposed to willingness and familiarity), US consumers either run with the pack (POS), or lag behind (send money)—in the latter case, far behind much smaller and less vertically integrated countries. And while the exception, m-commerce, is a big one, it's important to note that both China and Saudi Arabia do about twice as well in that important consumer metric.

Willingness to make mobile payments increases with income but decreases with age.

Much of the explanation has to do with a demographic disconnect. In terms of usage, familiarity, and willingness, the US population skews male, young, and affluent. It's the latter two that are the issue. The affluent have lots of disposable income, but how many of them are young? And the youth are ready to go ahead with mobile, but does their income match their willingness to spend in creating a viable market? Expressed graphically, questions like these make an X [refer to graph] that pinpoints the conundrum.

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GLOBAL PERSPECTIVE ON CONSUMER SENTIMENT IN THE UNITED STATES

Relative to the Index average and leading countries, how do consumers feel about mobile payments?

54% - France
Country Score Index Average Leading Country

MasterCard Conclusion

While scoring quite well compared to other markets in terms of integration, there remains much work to be done in the United States. That's one of the reasons m-commerce is so far ahead of the other varieties of mobile payments: The infrastructure—especially as regards the roles and responsibilities of the players—is already in place. The existence of Isis and Google Wallet do much to boost the United States' score; but until both these projects begin to achieve air speed by engaging all the players, it's still early days.

41.5
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