According to Cleveland Brown, CEO of Payscout, many millennials have already embraced the new technology, and even more are likely to do so in the future. A survey conducted by FICO found that 32% of millennials are likely to use m-wallet services in 2017.
However, there is a strong disparity in the awareness of mobile payment technology and those who actually use available apps. A recent Accenture survey found that 52% of North Americans are “extremely aware” of the technology, but only 18% avail themselves of the technology on a regular basis. In other words, the performance of mobile payment technology has yet to meet its potential.
Perceived security also plays an important factor in the adoption of mobile payment technology. While many mobile wallet apps rely on PIN, fingerprints and other biometrics, many consumers are still somewhat reticent to rely on these security features to routinely protect financial information. Mobile delivery also makes up more than its fair share of the USD6 billion in fraud costs merchants and card issuers face on an annual basis. While mobile payments account for only 14% of transactions among merchants who accept them, they also account for 21% of payment fraud cases.
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