Americans and Europeans wary of in-store mobile payments - survey

Only a quarter of people in the US and Western Europe are willing to use their mobile devices for in-store payments, according to a survey from Bain & Company.

1 comment

Americans and Europeans wary of in-store mobile payments - survey

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However, those that do use mobile payments are big spenders, forking out roughly twice as much through all digital channels than non users, says Bain, which quizzed 25,000 people in the US, UK, France, Germany and Spain.

Many consumers, anxious over potential data security and privacy breaches, remain unswayed by the benefits of mobile payments, with 40% of those currently unwilling to adopt, saying that they don't see the need for changing their payment behaviour.

But, says Bain, if these consumer concerns can be addressed, other factors suggest that mobile payments are poised for rapid adoption over the next three years.

The report notes that the annual growth rate of mobile banking was 59% in its first four years, compared with a 35% rate for the now ubiquitous online banking in its first four years.

Meanwhile, although only a quarter of respondents say that they are willing to try in-store mobile payments, this still leaves huge room for growth because currently only three to seven per cent, varying by country, have used it so far.

Bain argues that the key to winning these potential adopters over from cash and cards is extra value such as faster checkouts, discounts and promotions, access to real-time balances and location-based marketing offers.

Stephen Bertrand, report lead author, says: "The case for mobile payments has been a long time in the making, but still remains unconvincing for many consumers.

"But our study of 25,000 consumers shows that the size of the prize is substantial for those banks, retailers and other digital wallet providers able to create customised value propositions for the growing number of people signalling their willingness to shop on their mobile devices."

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Comments: (1)

A Finextra member 

I think that your last paragraph says why banks will continue to move forward. But, the up take could be slower than hoped for based on the first part of the story.  I think we also need a good standard secure mobile wallet that people really want to use (there is not one yet) on their phones to help get mobile payments going.

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