Younger U.K. Consumers Are Ready to Replace Cards with Phones
Just under a quarter of U.K. adult consumers, or 24 percent, have used their mobile phones to make payments, while 12 percent do so regularly, according to the Prepaid International Forum. The finding is based on on surveys of 1,000 U.K. adults conducted in March.
What’s more promising for mobile payments is that the majority of consumers younger than 44 plan to make mobile phones their main method of making payments within the next few years, reducing the use of plastic and cash. Already, 49 percent of surveyed consumers between the ages of 18 and 24 report using mobile payments. That compares with 12 percent between the ages of 55 and 64.
Age, in fact, “seems to be the only major factor in the appeal of mobile payments—the survey showed no significant variations between income and geography,” the report said.
Consumers will shift to mobile payments mainly to perform real-time checks of accounts and balances (cited by 47 percent of consumers) and so they have to carry only their phone, not other payment methods (39 percent). The prospect of carrying fewer cards (37 percent) and receiving retail discounts or bonuses through mobile apps (35 percent) also appeal to consumers, along with the ability for P2P transfers.
“Retailers are encouraging usage with discounts and special deals, and innovations such as immediate peer-to-peer money transfers are opening people’s eyes to the potential improvements to how they currently manage their cash,” said Alastair Graham, PIF spokesperson.
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