Fifty-one percent of holiday shoppers favor an app from their financial institution instead of a third party such as Apple Pay, Android Pay or Samsung Pay, a mobile payment trends survey revealed.
INSIDE Secure's consumer in-store mobile payment trends survey, which was based on research from the Plano, Texas-based Research Now, also found those who don't use their mobile devices to make in-store purchases cited identity theft (70%), payment fraud (70%) and privacy concerns (71%) as their primary reasons.
Nevertheless, the survey, which examined the mobile payment preferences of 1,217 U.S. consumers, revealed mobile payment service popularity growth heading into the 2015 holiday season, with 39% of respondents planning to make in-store holiday purchases with their mobile devices this year – a jump from last year's 33%. In addition, 17% of respondents who did not use their smartphones to make holiday purchases last year said they planned to make the leap to mobile this year.
"It's exciting to see the evolution of in-store mobile payments from last year to this year," David Monahan, research director of enterprise management associates at INSIDE Secure, said. "However, for mobile payments to make the leap to full-scale adoption, the industry must create the consumer confidence that the technology is more secure than traditional card-based payments, and offers the security to prevent the identity theft and privacy compromises they have been experiencing."
Other survey results included the following:
- Men (53%) are ahead of women (47%) in their plans to use mobile payments this holiday season.
- Mobile payments are the most popular among people aged 18 to 44, with 64% of people in that age range planning to use their smartphones at the point-of-sale versus 36% of those aged 45 or older.
- iOS users are more likely than Android users to use mobile payment services at the POS this holiday season, with 45% of iOS users and 26% of Android users stating they will do so.
The survey finding that states consumers prefer their own financial institution's mobile payment app is consistent with the results of a study from the Lombard, Ill.-based Raddon Financial Group, which stated while nearly half of consumers believed new providers will affect the financial space, only 38% would consider using them. The Raddon data also indicated consumers prefer traditional providers such as credit unions and banks in the payments ecosystem as a whole.
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
