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BizReport : Mobile Marketing : December 06, 2013

Research reveals poor uptake and awareness of NFC payments

The mobile payments industry has done little to motivate consumers in the UK to adopt near field communications technology or quell their privacy fears. As a consequence, few use it.

by Helen Leggatt

A new report from YouGov reveals that only about a third (35%) of UK adults are aware of NFC-enabled devices. Indeed, just 9% even know that their device is enabled for near field communications activity.

In fact, YouGov's data shows that there has barely been an increase in awareness, or adoption, since their previous study in September last year.

"Despite the advances in NFC mobile technology, the industry has yet to increase the awareness nor put forth a compelling value proposition to the consumer to adopt NFC payments," said John Gilbert, consulting director, YouGov Technology and Telecoms. "In addition, retail adoption is rather limited curbing the consumers' desire to transition."

The reason behind 56% not adopting NFC is that they are simply not interested. Meanwhile, 53% had concerns that, should their phone be lost or stolen, they were left susceptible to financial exposure. For 39%, the current 'Chip and PIN' system was more than adequate and they felt little need for any new payments technology.

Recent data released by Deloitte found that the number of consumers with a NFC-enabled mobile phone has doubled since 2012. Ten percent of the 37,600 consumers surveyed across 20 countries said they know their mobile phone has NFC capabilities, almost two-thirds (62%) said their device did not and 28% weren't sure.

Of the 10% that were aware they had an NFC-enabled device, 34% said they had used it within the last month but 62% said they had never used it.

Image via Shutterstock

Tags: mobile marketing, mobile usage, near field communications, NFC trends

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