Security, Loyalty Programs to Drive Mobile Payment Adoption: Survey

By Nathan Eddy  |  Print this article Print

The biggest drivers of mobile payments adoption are consumer surety of personal and financial information security.

U.S. consumer sentiment shows that while only two percent of adults currently use their mobile phone to pay for goods and services, 57 percent of adults expect that mobile payments will become widespread over the next three years, according to a survey released by VeriFone, a secure electronic payment solutions provider.

The biggest drivers of mass adoption of mobile payments were identified as consumer surety of personal and financial information security, as well as the adoption of additional consumer benefits such as in-store discounts, coupons and customer loyalty programs incorporated into the checkout process.

The survey found 63 percent of adults believe that new technologies that enable them to use their mobile phone to pay for goods and services would put their personal information at a higher risk compared to credit/debit cards, while 47 percent of consumers are content knowing that all their personal and financial information on a mobile phone is completely secure.

In addition, 41 percent of consumers said they would like to be able to apply discounts/coupons to their purchases using just a mobile phone, and 31 percent of consumers would like to be able to take advantage of store-specific loyalty programs using just their phone

The survey also revealed differences in interest and sentiment regarding mobile payments based on gender and age. Forty-three percent of women said they would never use a mobile phone to pay for goods and services, compared to 32 percent of men, and 30 percent of adults ages 25 to 34 expect mobile payment adoption to become mainstream over the next three years. Only 13 percent of adults ages 55 to 64 feel the same way, according to survey results.

"What consumers are telling us is that they’re cautiously optimistic about using their phone to pay for goods and services, but they also have significant expectations about security and value-added features," said Dave Talach, vice president of global product management at VeriFone. "Consumers want all the cool features and benefits that are promised in this new age of commerce but there’s real work and education needed to gain their trust and confidence."

The survey was conducted by StrategyOne, an independent research firm, among a U.S. sample of 1,036 adults age 18 years or older on April 28-29, 2011. Results were weighted to be representative of the U.S. Census based on gender, age, geographic region and race to ensure a reliable and accurate representation of the total U.S. population.