Page 22 - Consumers and Mobile Financial Services 2014

14 Consumers and Mobile Financial Services 2014

Among those who do not use mobile payments, the
Table 5. Use of mobile payments in the past 12 months
by race main reason they have not adopted the technology is
that they see little value or benefit from using mobile
Percent, except as noted
payments: 76 percent report that it is easier to pay
Race/ethnicity No Yes Total with other methods, and 61 percent report that they
do not see any benefit from using mobile payments.
White, non-Hispanic 72.1 49 68.1
Black, non-Hispanic 8.2 21.2 10.5 Concerns about the security of mobile payments are
Other, non-Hispanic 5.8 5.3 5.7 also a significant reason why people do not use them
Hispanic 12.8 22.1 14.4 (63 percent), as is a lack of trust in the technology
2+ races, non-Hispanic 1.1 2.4 1.3 (44 percent). Not having the necessary feature on
Number of respondents 1,956 372 2,328
their phone was cited by 46 percent of consumers,
while 37 percent said that they don’t understand
mobile payments, and 27 percent said the places they
As with mobile banking, there is no clear correlation shop don’t accept mobile payments (figure 5).
between mobile payments usage and income or edu-
cation level among those who own a mobile phone. For those worried about the security of mobile pay-
ments, the aspects of concern largely mirror those
Of current mobile payment users, 18 percent started reported by those concerned about the security of
using mobile payments in the prior six months, while mobile banking. The main fears associated with
20 percent began using mobile payments six to twelve mobile payments include the interception of payment
months prior to the survey. A further 18 percent information (22 percent), phone “hacking” (10 per-
report that they started using mobile payments in the cent), lost or stolen phones (9 percent), misuse of
prior one to two years, and 15 percent report that personal information (4 percent), and malware or
they began using mobile payments more than two viruses installed on their phone (2 percent). As with
years prior to the survey. A significant number of mobile banking, the most common response was that
users are unable to recall when they began using they were concerned with all of those security risks
mobile payments (25 percent). occurring (52 percent).

Similar to the findings for mobile banking usage, When consumers who do not use mobile payments
convenience is the main reason most people started were asked to indicate all the mobile payment activi-
using mobile payments (37 percent). Getting a smart- ties they would have an interest in using if their con-
phone is also a major driver of mobile payment cerns about the technology were addressed, 62 per-
adoption (26 percent). The ability to make mobile cent indicated that they simply had no interest in
payments becoming available to them was cited by using mobile payments even if their concerns were
14 percent of users, while 7 percent indicated that addressed. Of the potential activities of interest by
they began using mobile payments because they others, receiving/using coupons on their phone was
became comfortable with the security. the most commonly cited (22 percent), followed by

Figure 5. What are the main reasons you have decided not to use mobile payments?

It's easier to pay with cash or a credit/debit card 76%
I'm concerned about the security of mobile payments 63%
I don't see any benet from using mobile payments 61%
I don't have the necessary feature on my phone 46%
I don't trust the technology 44%
I don't really understand all the different options 37%
It's difcult or time consuming to set up or use 34%
The places I shop don't accept mobile payments 27%
I don't need to make any payments 23%