In today’s mobile-centric world, many consumers own a smartphone. According to Mobile Payments Today, the share of Americans who own smartphones is 77 percent, one of the highest smartphone ownership rates in the world. These smartphones allow for instant connectivity and can be used for everything from planning one’s day to paying bills. In fact, according to data from a recent Speedpay Pulse® Trend Report, one-third of consumers surveyed said they would consider using a mobile wallet to pay their bills in the future. However, despite this growing interest in mobile payment methods, widespread adoption of these offerings is still lagging behind in the U.S.
The Current State of Mobile Payments
The use of mobile payments has not been as widely embraced in the U.S. as compared to other countries. Many Americans still prefer to pay with cash, credit, or debit cards.
Why Mobile Payments Are Struggling to Catch Up
Traditional payment methods such as cash and credit card have become a habit for many consumers, and changing behavior patterns has proven to be difficult. Shifting to an all-digital payment method is a concept that many consumers are still uncomfortable with, and companies should be aware of this hesitation to change.
The utilization of advanced technology such as mobile payments can also raise security concerns for consumers. Due to recent significant data breaches, companies and consumers alike may have a growing fear that mobile payment methods provide another way hackers and fraudsters can prey on personal information. According to our research, consumers cite security concerns as the top reason they are still hesitant to pay a bill via mobile wallet.
How Companies Can Ease Consumers’ Concerns
Providing tools and resources to educate consumers on mobile payments could contribute to speeding up the mobile payment adoption rate. Educating your consumers on the benefits of mobile payment offerings can help increase user confidence. Within these communications, it’s important to note that some consumers may not have the knowledge or full understanding of how to successfully utilize mobile payments and take advantage of their associated benefits.
In addition to consistent communication, it’s critical for companies to ensure their security measures are up-to-date to instill consumers with confidence that their personal information is protected. Unfortunately, no system or method is perfect and it’s important for companies to consider taking extra steps when adopting mobile payment offerings to ensure they have the most updated security measures in place to protect consumers. This can also help increase user confidence and persuade consumers to embrace mobile payments.
Even though the adoption of mobile payments in the U.S. is currently lagging behind other countries, this payment method is expected to continue to gain momentum. However, as with any new technology, concerns will also accompany growing popularity. It’s important for companies to continue to educate consumers and provide them with the necessary resources to help ease consumer concerns and increase their confidence in these payment methods.
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