Consumers who buy goods using mobile payment methods spend nearly twice as much through all digital channels (including mobile web and internet shopping) than those not buying on mobile devices, new research reveals.
But the study of 25,000 consumers in the US, UK, France, Germany and Spain by consultancy Bain & Co also found that consumers do not yet find mobile payments secure, private or convenient enough. Hence, 80% of consumers have not changed their payment behaviour by switching to mobile payments.
While more than half of consumers on average, and over 70% in Western Europe, are aware of mobile payment options, only a quarter of those surveyed are willing to use their mobile device to make payments in stores.
"The case for mobile payments has been a long time in the making, but still remains unconvincing for many consumers," said Stephen Bertrand, partner with Bain & Company in London, head of the firm's technology practice in EMEA and lead author of the report.
"But our study of 25,000 consumers shows that the size of the prize is substantial for those banks, retailers and other digital wallet providers able to create customised value propositions for the growing number of people signalling their willingness to shop on their mobile devices."
The study argued that it was key to persuade consumers to switch over from debit and credit cards by convincing them of the benefits of adopting mobile payments. These include faster checkouts, discounts, promotions, access to real-time balances and location-based marketing offers.
"Consumers are voicing their willingness to change payment behaviours,” concluded Bertrand. “It's now up to mobile payment providers to deliver solutions that unlock the long-awaited potential of mobile payments."
Sally Percy is editor of The Treasurer