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BizReport : Trends & Ideas archives : October 14, 2015

82% of Brits do not intend to buy Xmas gifts with smartphone or smartwatch payment tech

Despite the hype surrounding mobile payments via phones or a smartwatch, research from Skopos reveals that a significant number of Brits won't be using either to purchase gifts this festive season.

by Helen Leggatt

Using data from their latest (Sept. 2015) Skopos MTrack, the marketing consultancy found that a whopping 82% of the U.K. adult population does not intend to pay for 2015 holiday gifts using a mobile or watch (e.g. Apple/Samsung Pay or similar).

Why? Because the vast majority (94%) don't have an Apple or Samsung or similar smartwatch, and 40% don't have an Apple or Samsung mobile. Furthermore, 17% of Apple and Android smartphone owners say their device is not compatible with mobile payments, which may be a "possible misunderstanding", says Darren Mark Noyce, Skopos founder and CEO (London).

As well as not having the right gear, there are other reasons why mobile payments are not on the wish list for many consumers in the U.K. Eighteen percent said they have no interest in owning a smartphone or smartwatch, 17% prefer to pay using cards, 10% are put off by security and scam concerns and 9% prefer paying with good old-fashioned cash. Ten percent won't be using a smartphone or smartwatch because they intend to shop online for their gifts.

However, Noyce has little doubt that, in time, familiarity and availability will see the numbers paying by smartphone and smartwatch increase, more so since many intend to purchase a smartwatch in the future. Plus, while 82% do not intend to use either device to pay for purchases, that leaves 18% who do, despite it being early days for the technology.

"As we have found time and time again with our research, although critical mass will most likely be reached regardless for mobile payments, mass education and familiarisation plus clear reassurance (in communications and actions to provide "security") are the keys for the successful introduction of new technology and channels," says Noyce. "Just think what time and the padlock symbol did for online transactions!"

Image via Shutterstock

Tags: mobile payments, research, smartphone, smartwatch, U.K.

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