Security, Loyalty Programs to Drive Mobile Payment Adoption: Survey

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.

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