While the payments industry is ablaze with mobile payments technology and potentially huge profits, it will not come to fruition unless consumers are educated on the performance and ease of use of mobile pay services.
A recent survey by Verifone, conducted by Wakefield Research, of U.S. consumer attitudes reveals 53% of consumers said it was important for more stores to install devices that enable consumers to pay with their smartphones, indicating wide receptivity to mobile pay options once they’re provided.
The survey response was significantly higher among younger consumers; 64% of respondents aged 40 and below agreed that more stores should install devices that allow customers to use smartphones to pay.
Additionally, 84% of respondents said they would use their smartphones to pay for small and medium purchases, such as a cup of coffee or pair of jeans.
Four other key findings by the survey data include:
1. Credit/debit cards remain the primary method of payment for 63 percent of all survey respondents, with six percent favoring alternative payment options such as PayPal, and four percent preferring mobile wallet services.
2. A total of 54 percent of survey respondents are familiar with EMV technology. Of this group, 39 percent use credit or debit cards that have EMV chips as their primary or secondary payment method; among respondents under 40 years of age, 49 percent use credit or debit cards that have EMV chips as their primary or secondary payment method.
3. More than half of respondents – 56 percent – are willing to continue shopping at a store whose credit card information was stolen; the number of consumers who are less likely to continue shopping at such a store was 44 percent.
4. Among the advantages cited to using smartphones instead of traditional payment methods, speed of use ranked first (34 percent), followed by freedom from carrying a wallet (29 percent), access to mobile deals (24 percent), ease in tracking spending (23 percent) and safety of personal data (18 percent).
For more data on mobile payments access CardData®. For information and commentary on mobile payments visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on mobile payments are available exclusively through CardWeb.com.®