Mobile payments challenged by lack of consumer interest

According to US Federal Reserve, mobile phone users opt out of mobile payments for a number of reasons: 80% of non-adopters said existing payment methods were easier, 67% had security concerns, 36% dont understand the options available to them, and 34% believe its difficult to set up mobile payments.

However, they would still opt out even if all of the barriers were lifted: 74% of mobile phone users said that even if all their issues and concerns surrounding mobile payments were resolved, they still wouldnt want to engage in any mobile payment activity.

Furthermore, there was mild interest in a series of applications: Assuming all concerns were addressed, 17% would make in-store mobile payments, and 12% would make in-app or in-browser mobile payments.

Payments companies are pushing mobile payments through new products, new point-of-sale (POS) devices, new signage, and more, however, these strategies so far havent ignited widespread interest. We still expect interest to rise in line with the continued rollout of chip cards, which are creating a more fragmented user experience with traditional payment methods. These pain points brought about by the EMV migration could push more people to experiment with mobile payments.