Survey: Half of consumers not familiar with mobile payment
NEW YORK — As the use in-store mobile payment becomes more pervasive, consumers require increased education on the performance and ease of use of mobile pay services, a recent survey by Verifone of U.S. consumer attitudes suggested.
Conducted online during the holiday 2014 shopping season by Wakefield Research, the survey revealed that than half of respondents – 53% – said it was important for more stores to install devices that enable consumers to pay with their smartphones, indicating wide receptivity to mobile pay options once they’re provided. The response was significantly higher among younger consumers; 64% of respondents aged 40 and below agreed that more stores should install devices that allow customers to use smartphones to pay.
Additionally, 84% said they would use their smartphones to pay for small and medium purchases, such as a cup of coffee or pair of jeans.
At the same time, the survey showed that half of consumers polled were unfamiliar with mobile technologies such as near-field communication (NFC) and mobile wallets. Similarly, half of respondents said they were unlikely to shop in a store because it used in-store tracking technology to provide offers on mobile devices.
“This is a classic case of new technologies needing to reach critical mass before consumers come on board,” said Joe Mach, senior VP and general manager of vertical solutions at Verifone. “Today, in 2015, the pieces are fitting into place – what’s essential now is for the industries driving the mobile payment revolution, from finance to retail to systems providers, to educate consumers on mobile payment’s benefits and easy use.”
Other key survey data include:
• Credit/debit cards remain the primary method of payment for 63% of all survey respondents, with six percent favoring alternative payment options such as PayPal, and four percent preferring mobile wallet services.
• A total of 54% of survey respondents are familiar with EMV technology. Of this group, 39% use credit or debit cards that have EMV chips as their primary or secondary payment method; among respondents under 40 years of age, 49% use credit or debit cards that have EMV chips as their primary or secondary payment method.
• More than half of respondents – 56% – are willing to continue shopping at a store whose credit card information was stolen; the number of consumers who are less likely to continue shopping at such a store was 44%.
• Among the advantages cited to using smartphones instead of traditional payment methods, speed of use ranked first (34%), followed by freedom from carrying a wallet (29%), access to mobile deals (24%), ease in tracking spending (23%) and safety of personal