Survey: Consumers Spend Double Via Mobile, But Security/Privacy Remain Barriers for Non-Users (March 27, 2014)
The good news for mobile payments is that consumers in the U.S. and Europe are spending double when they initiate payments via their mobile devices or online, according to a survey released this month from Bain & Company. The bad news: Concerns over security, privacy and convenience keep 80 percent of consumers from using mobile payments.
“The case for mobile payments has been a long time in the making, but still remains unconvincing for many consumers,” said Stephen Bertrand, partner with Bain & Company in London, head of the firm’s technology practice in EMEA and lead author of the report. “But,” he noted, “our study of 25,000 consumers shows that the size of the prize is substantial for those banks, retailers and other digital wallet providers able to create customized value propositions for the growing number of people signaling their willingness to shop on their mobile devices.”
Bain surveyed consumers in five countries, including the U.S., U.K., France, Germany and Spain. The consultancy found that, on average, mobile payments users spend roughly twice as much through all digital channels (i.e., mobile Web and Internet shopping) than mobile payment non-users—by more than two-to-one in the U.S. and U.K. and between 30 to 60 percent more in France, Germany and Spain. The survey also found consumers are adopting new forms of financial technology more quickly than in years past. For example, mobile banking annual growth was 59 percent in its first four years compared with a 35 percent annual growth rate of online banking in its first four years, according to the report.
Persuading the doubters to adopt mobile payments will depend on communicating benefits, such as faster checkouts, discounts and/or promotions, access to real-time balances and location-based marketing offers. Providing customized consumer offers tailored to specific consumer needs is critical for banks, retailers and alternative payment providers seeking greater market share, Bain suggests.