New survey shows that 30% of smartphone users plan to make mobile payments in stores
The holiday season is rapidly approaching and retailers expect to see a great deal of activity in the mobile commerce space. Some may be too cavalier with their expectations, however, as a new survey from Stratos suggests that mobile shopping is only an interest to the minority of consumers. The survey found that 30% of smartphone users plan to pay for products in physical stores using Apple Pay or Google Wallet.
The demand for in-store payment support is rising, but consumers are slow to respond to new services
In-store mobile payments are still rare, but retailers have been investing heavily in bolstering the infrastructure to support these payments over the past year. Many retailers want to see consumers use their mobile devices in their stores, expediting the checkout process and taking advantage of the mobile services that these retailers have employed. Consumers may be more prone to shop online with their mobile devices, however, rather than use their devices to purchase products in physical stores.
Lack of awareness among consumers may be the reason behind slow adoption
The survey also found that 69% of consumers do not know which retailers actually accept mobile payments in their stores. Many retailers have been sluggish in promoting their mobile commerce services, which has lead to a lack of awareness among consumers. Some retailers are not convinced that mobile commerce is a worthwhile investment. While they have taken moves to support mobile payments, they have only done so to accommodate consumer demand to a modest degree.
Consumers may favor mobile commerce as a way to avoid having their payment cards lost or stolen
The survey found that the most popular reason consumers would use mobile payments was to limit the threat of having their credit or debit card stolen. During the holidays, stores become packed with shoppers. Some seek to exploit the financial information of others by stealing their payment cards. In other cases, the commotion at stores can cause people to misplace and lose their payment cards. While mobile devices are not theft proof, consumers often keep a better handle on their smartphones than their payment cards.
Retailers have shown strong interest in mobile payments for some time, but few have made steps to engage the mobile audience in the past. With the demand for mobile-centric services on the rise, retailers have been looking for platforms they can use to accommodate this demand. Apple Pay is a relatively new service, but has managed to help retailers engage mobile consumers and an effective way.