Market research agency YouGov has released the findings of its Mobile Wallet Track, which indicate a market for mobile payments despite confusion and ignorance over the technology, products and solutions being offered.
According to the study, which canvassed over 1,200 UK consumers, 70 per cent haven't heard of the term ‘mobile wallet’, and 91 per cent haven't heard of ‘Near Field Communications’. As well as a high level of confusion about the technology, concerns were raised about personal and data security. YouGov believes these must be addressed by the mobile industry if the technology is to enjoy mass consumer adoption in the near future.
The acronym NFC, whilst appealing to the technology-savvy and industry insiders, might also have to be abandoned. If not, a massive (and expensive) marketing and awareness campaign needs to take place.
36 per cent of respondents admitted they didn't know if their existing phone was enabled to make cashless payments.
However, the research did reveal an appetite for mobile payments, with 23 per cent of people indicating that they are interested in paying for items using their mobile phone instead of cash. But that’s where the good news starts and stops.
Of those respondents that have contactless payment technology on their credit or debit cards, the vast majority (69 per cent) never use it. 20 per cent of those prefer to use chip and pin, and 15 per cent aren't sure how it works. Russell Feldman, the YouGov Consultant who led the research, comments:
“Many consumers are attracted by the idea of paying for items via their mobile phone. But it is down to mobile operators and handset manufacturers to work with retailers to educate consumers about the real advantages of paying for items in this way. We believe once people have seen it in practice - and are reassured about the measures in place to protect their financial and personal security - they will be quick to adopt it and the industry will reap the rewards.”
The main reason why consumers will not buy a new handset with mobile payment capabilities, when they become available, is that they are happy with how they pay at the moment (67 per cent). In addition,
56 per cent are concerned about security and fraud, whilst 45 per cent say they simply don’t need one or are just not interested.
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