Consumers still wary when it comes to mobile payments
While mobile and digital payments are on the rise, the majority of consumers still have concerns with adoption of the technology, according to a Walker Sands’ 2015 Future of Retail Study, which examines changing trends and consumer behaviours in retail.
The report, based on an analysis of 1400 consumers, says consumers are waiting for a trusted source before jumping into mobile payment technology.
While only 4% of those surveyed had used Apply Pay, 18% say its introduction makes them more likely to make a purchase with their smartphone in the next year. The number rises to 36% when asking Apple users.
The report says consumers, especially younger generations, are looking for the convenience of peer-to-peer payments. Half of consumers ages 18-25 say they are likely to exchange money with a friend or colleague via a mobile application such as Venmo, QuickPay, etc. in at least one payment scenario, compared to only 19% of those ages 46-60.
However, there’s no major loyalty yet to mobile payments. Of those surveyed, 2% have used Venmo and 16% have used banking applications, such as QuickPay, to transfer funds.
Consumers are most likely to use mobile payment applications for social events, according to the survey. Restaurants (24%) and bars (17%) were the most popular reasons consumers cited for using peer-to-peer applications.
The report also notes that cash use continues to be on the decline – only 11% of consumers have paid for something in cash in the past day and 59% of consumers carry less than $20 in their pocket.