Less than a third of U.S. consumers would switch handsets in order to use their cell phones to make purchases, according to the latest Payment Report from Auriemma Consulting Group.
Furthermore, ACG has found that just 23% of consumers would consider switching mobile telephone providers in order to obtain a phone that can perform mobile payments.
Of those who do not wish to use mobile payments, mobile security concerns (73%) appear to be the main deterrent, along with “very high” levels of satisfaction with existing payment methods (66%), according to ACG.
“Traditional, plastic-based payments remain an effective, efficient, and convenient way to conduct purchase transactions,” said Patricia Sahm, managing director at ACG. “The appeal of using new technology is significant, but merchant acceptance must be widespread in order for it to be adopted widely”.
In the interim, Sahm says there are still opportunities for mobile payment developers to help advance consumer acceptance, particularly through offering liability protections of low-value purchases such as those imposed on today’s credit cards.
“Voluntary adoption of similar consumer liability limitations for mobile payments could go a long way in providing consumers with the peace of mind to comfortably use mobile payments technology,” said Dr. Sahm, adding that standardization at the point of sale is also key.
“The card networks became so ubiquitous by providing retailers with a convenient form of payment that functioned efficiently with virtually all retailers’ point-of-sale designs. Having similar standardization for point-of-sale could help to advance mobile payments.”