News by Topic
- Search Marketing
- Email Marketing
- Loyalty Marketing
- Mobile Marketing
- Social Marketing
- Viral Marketing
- Trends & Ideas
- Internet Marketing 101
Privacy and security barriers to mobile payment use
Mobile penetration in the US and Europe continues to rise, but consumers remain skeptical about using their mobile device as a means of replacing cash and credit cards, according to new research released by management consultants Bain & Co.
In a survey of 25,000 US and European consumers for their "The Consumer View of Mobile Payments" report, Bain & Co confirms what other studies have already shown - mobile payments are yet to catch on.
While awareness of mobile payments options is rising - over half of all respondents and 70% of Europeans were aware - only 25% overall said they would be willing to use their device in-store to pay for items.
Forty percent of all respondents said they simply saw no need to change their current methods of making payments. However, the majority (80%) said privacy and security concerns did not yet out-weighing the convenience of mobile payments.
The report did show some willingness to try out mobile payments. While only 3-7% of the 25,000 consumers, varying by country, said they have previously used mobile payments in stores, 16-27% said that they are willing to try.
"The case for mobile payments has been a long time in the making, but still remains unconvincing for many consumers," says Stephen Bertrand, lead author of the report. "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 customized value propositions for the growing number of people signaling their willingness to shop on their mobile devices."
Recent research released by the Yankee Group found that, despite 67% of Americans now owning a smartphone just 16% had used one to make a payment in-store. Even among those that are using a mobile wallet few are using them on a regular basis.
Image via Shutterstock
- Driving website traffic revealed as retailers' biggest challenge
- Revenues from tablet games to triple in next five years
- Marketers must react to changing consumer behavior caused by technology
- Facebook launches Event ads to appear in Newsfeeds
- UK: Online Christmas shopping to exceed £13 billion
- Top 3 retail tips to personalize across channels
- Expert Advice: Use in-store techniques to sell online
- Twitter helps agency campaigns take off with Flight School
Featured White Papers
- Expert Panel: Brand Strategists Answer Top 5 Social Questions
During SXSW Interactive, we gathered a team of five leading brand strategists to answer the five most pressing social questions...
- The Truth About Cloud Security
"Security" is the number one issue holding business leaders back from the cloud. But does the reality match the perception?...
- 5 Ways to Personalize Beyond the Subject Line
Many marketers are still using batch and blast tactics for their emails and are often limited in their personalization efforts...