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PayPal is the most popular mobile payment app that US adults typically use, with over twice as many users as the next most popular choice, Venmo, according to November 2024 data from YouGov.

Proximity mobile payments are on a growth tear, driven by strong spend per user. Here’s how providers are using wallet integration and new features to make proximity payments stickier.

Competitors are moving in on Apple’s home iPhone turf.

We look at how retailers can improve their shopping experiences for younger customers to meet their avoidant preferences.

This launch could revolutionize PayPal’s in-store ambitions—and provide real competition for Apple Pay

The news: Google Pay added Klarna to its in-app BNPL roster of Affirm, Zip, and Afterpay. Our take: Klarna’s late adoption of a physical card like Affirm’s Affirm Card in the US set the BNPL provider back in terms of capturing a wider user base and payment volume. Integrations like Google Pay and Apple Pay can help overcome that gap—though Affirm also has partnerships with both Google Pay and Apple Pay.

Gen Z is the first mobile payments-native generation. By 2028, 67.8% of US adults will be mobile wallet users, per our forecast. Gen Zers are already way ahead: 85.1% made an in-store or online payment using their phone in 2023, according to Federal Reserve Bank of Atlanta.

The rule would require larger payment apps to be regulated like banks. Ending this rule would be a win for Apple Pay and Google Wallet

A rewards integration coming later this year could make Synchrony a more attractive co-brand partner

With the release of Square Handheld, Live Nation Canada staff can use its portability to serve a contactless-friendly Gen Z consumer base: We forecast that 67% of 18- to 24-year-olds will use contactless mobile payments in 2025. This opportunity could get a boost from the growing use of NFC wristbands designed for rapid payment at major festivals and concerts.

PayPal has struggled to crack proximity mobile payment. Unlike Apple Pay, which was designed as a proximity mobile payment method, PayPal was designed for digital payments; its in-store payment experience is not as convenient as its pass-through rivals. In the UK, the only in-store PayPal payment option is via scannable QR codes, which can be generated by the customer or the merchant.

The news: A federal judge has delivered a sharp rebuke to Apple, ordering the company to loosen its control over the App Store and cease commissions on certain app sales, marking a major shift in the Epic Games antitrust case and weakening Apple’s dominance over mobile payments.

We forecast that 38 million US Gen Zers will pay with proximity mobile payments this year—or 57.2% of all US Gen Zers. Edging out the competition: Venmo is coming off of a robust first quarter, with revenues growing 20% YoY, Pay with Venmo’s total payment volume up more than 50%, and the number of Venmo Debit Card monthly active cardholders up 40%.

The Vipps wallet in Norway is the first to use Apple’s NFC tech, opening the floodgates for more to deploy the tech.

Click here to view our full forecast for US proximity mobile payment users, by generation. Gen Zers are driving BNPL growth while evading a debt trap. Gen Z will remain a key driver of BNPL growth. BNPL’s digital user experience and app-based shopping options are a natural fit for digital natives’ lifestyles.