Across the transportation landscape, smartphone technology has proven to be highly disruptive, ushering in new ways for consumers to hail rides and pay for parking meters. However, the adoption of mobile apps to pay for gas at the pump has appeared to be stuck in neutral.
So, why are payments at the gas pump lagging behind in terms of mobile app adoption? For the “Paying At The Pump Report: What Drives Mobile Adoption,” a GasBuddy collaboration, PYMNTS surveyed over 10,000 mobile-using consumers about their gas-buying habits.
Based on survey results, consumers’ top priorities when using mobile apps at the gas pump come down to cost, convenience, checkout speed and loyalty rewards. More specifically, they value mobile apps that can help them find the best prices (51.6 percent), give them directions to the nearest gas station (35.5 percent) and help get them discounts on their gas pump purchases (23 percent).
Meanwhile, one of the top barriers to adoption is lack of awareness. Nearly half of respondents (49.7 percent) are unaware of apps that can be used to make gas purchases.
Here are some key takeaways from the report:
How High Income Millennials Use Mobile Apps At The Pump
A subset of consumers is positioned to wield considerable influence over the gas station market. The report includes a Deep Dive that examines the mobile app habits of High Income Millennials — consumers born between 1978 and 1995 who earn salaries that range from $75,000 to $150,000. Since they are younger and earn more than the rest of the consumer sample size, the spending habits of this group could change how gas pump retailers appeal to consumers in the future.
One way gas station managers and developers can help encourage more High Income Millennials is to assure them that mobile apps are safe to use. Nearly half (47 percent) said data theft concerns discourage them from using mobile apps at the gas pump.
How Chevron Sees Smartphones Driving Gas Pump Disruption
It’s little wonder that, for consumers, the decision to use mobile apps to aid gas pump purchases comes down to convenience. Rod Tos, manager of Customer Payments & Card Services for Chevron, noted that buying gas is one of the least enjoyable parts of operating a car.
“Buying fuel is not a desirable purchase,” Tos said. “It’s generally viewed as a negative experience.”
In the“Paying At The Pump Report,” Tos discusses the factors that Chevron customers value most in their gas shopping experience and how the company is working to move smartphone-driven payments innovation forward.
To read the story and find over 200 data points, download the report here.