50% Unfamiliar with Mobile Payment

by | 3 minute read

Conducted online by Wakefield Research among 1,000 adults 18+, the survey took place during the busy holiday shopping season, between Dec. 16–23, 2014, timed to coincide with maximum consumer interest in retail payment options.

More than 1/2 of respondents ‰ÛÒ 53% ‰ÛÒ 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‰Ûªre provided. The response was significantly higher among younger consumers; 64% of respondents aged 40 and younger agreed that more stores should install devices that allow customers to use smartphones to pay.

Additionally, 84% of respondents said they would use their smartphones to pay for small and medium purchases, such as a cup of coffee or pair of jeans.

As the infrastructure for widespread use of in-store mobile payment locks into place across the U.S., the industries involved can accelerate adoption by better educating consumers on the performance and ease of use of mobile pay services, the recent survey by Verifone of U.S. consumer attitudes suggests.

EDUCATING THE MARKET

At the same time, the survey showed that 1/2 of consumers polled were unfamiliar with mobile technologies such as near field communication and mobile wallets. Similarly, 1/2 of respondents said they were unlikely to shop in a store because it used in-store tracking technology to provide offers on mobile devices.

‰ÛÏThis is a classic case of new technologies needing to reach critical mass before consumers come on board,‰Û said Joe Mach, senior vice president and general manager of vertical solutions at Verifone. ‰ÛÏToday, in 2015, the pieces are fitting into place ‰ÛÒ what‰Ûªs essential now is for the industries driving the mobile payment revolution, from finance to retail to systems providers, to educate consumers on mobile payment‰Ûªs benefits and easy use.‰Û

THE PATH OF PAYMENTS

Other key survey data include:

  • Credit/debit cards remain the primary method of payment for 63% of all survey respondents, with 6% favoring alternative payment options such as PayPal, and 4% 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 1/2 of respondents ‰ÛÒ 56% ‰ÛÒ 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 data (18%).

EARLY ADOPTER SCENARIO

‰ÛÏThe survey data illustrate a typical early adopter scenario ‰ÛÒ high awareness among younger consumers, which is the essential precursor to mass market adoption,‰Û said Mach. ‰ÛÏThe mobile payment industry is an industry on the cusp, with so many components essential to success, such as EMV and ApplePay, coming into focus for the first time, and delivering real value to the end user.‰Û

You'll want to target these shoppers who say they want mobile payment while they're picking up jeans and coffee in the mall! AudienceSCAN reports that 47% of consumers plan to purchase women's apparel this year. The mostly female audience (80%) are perfect targets for adopting mobile payments.

26% are aged 25–34, and 61% are married. 37% of apparel buyers have children younger than 9 living with them. They're 67% more likely than average to enjoy fashion, and 57% of them are into baking at home. This audience could be shopping for workout gear ‰ÛÒ 48% walk for exercise and 31% do aerobics/pilates/yoga.

Likely women's apparel buyers have reacted to a commercial on TV in the past month (45%) and sponsored search results (38%). Coupons would be a winning way to get them interested in shopping: 41% started an online search after noticing a coupon.

Here are some categories these shoppers will get in line for: 52% plan to purchase cosmetics this year; 38% will buy women's lingerie; and 35% will pick up children's apparel.

AudienceSCAN data is available as part of a subscription to AdMall for Agencies. Media companies can access AudienceSCAN data through the Audience Intelligence Reports inåÊAdMall.

Courtney Huckabay
Courtney is the Editor for SalesFuel Today. She analyzes secondary customer research and our primary AudienceSCAN research. Courtney is a graduate of Middle Tennessee State University.