Research indicates that the use of mobile devices to make payments is continually on the rise. A Deloitte study predicted that in 2015 five percent of mobile phones would make a payment once a month (up from just 0.5 percent in 2014). Since the technology needed to support the ease and security of mobile payments and shepherd consumers all the way to a cashless society is out there, why is the shift occurring slower than anticipated?
Will fully embracing mobile payments simply take time?
Retailers and Consumers Have Different Viewpoints
Retailers are completely on board with mobile payments. Not only can they now keep buyer data secure, but they can use that data for analytics, targeted advertising and more. Developing technologies such as Blockchain have expanded to include digital assets, and loyalty programs are increasing in flexibility in response.
Consumers, on the other hand, aren’t fully sold on the value of mobile payments. They are not yet universally available, and the industry as a whole lacks a consistent experience. Consumers may need to use specific apps from a bank, from a mobile provider or from the merchant, for example, instead of a single method across all potential engagements. “Customers still don’t regard mobile payments as a more convenient way to spend,” Lawrence Freeborn of IDC explained in a piece by Raconteur.
Because of the inconsistencies in mobile payment systems, cash is still regarded as convenient, easy and familiar. More than a third of consumers in the developed world are still – wrongly – nervous about the security of mobile payments. (In contrast, mobile payments and money transfers in less developed countries such as African nations, India and parts of Eastern Europe, are exploding in popularity exactly because they are more secure than cash).
Where Do We Go from Here?
Overcoming consumer reluctance fields more questions than answers. Will it simply take time? How will mobile payments become a more seamless experience for users? The future may lie in “contextual” or “invisible” payments, which are used to enhance the overall experience for the consumer – perhaps not having to think about the payment or its mechanics at all.
While the inconsistencies in mobile payments are being smoothed over, Credorax will continue to offer a customer-centric approach, while building customized mobile payment architecture for merchants. What can we do for you? Contact us at: firstname.lastname@example.org