SAN JOSE, Calif. -- Education may stand as a significant barrier to the use of mobile payment at stores, according to a newly released consumer survey.
The study, commissioned by San Jose, Calif.-based Verifone, showed half of the consumers polled were unfamiliar with mobile technologies such as near-field communication (NFC) and mobile wallets. Similarly, half of the respondents said they were unlikely to shop in a store because it used in-store tracking technology to provide offers on mobile devices.
"This is a classic case of new technologies needing to reach critical mass before consumers come on board," said Joe Mach, senior vice president and general manager of vertical solutions at Verifone. "Today, in 2015, the pieces are fitting into place--what's essential now is for the industries driving the mobile payment revolution, from finance to retail to systems providers, to educate consumers on mobile payment's benefits and easy use."
Conducted online by Wakefield Research, Arlington, Va., among 1,000 adults 18 and older, the survey took place between Dec. 16 and Dec. 23, 2014, timed to coincide with maximum consumer interest in retail payment options.
More than half of the respondents (53%) said it was important for more stores to install devices that enable consumers to pay with their smartphones, indicating wide receptivity to mobile pay options once they are provided. The response was significantly higher among younger consumers, with 64% of respondents aged 40 and below agreeing that more stores should install devices that allow customers to use smartphones to pay.
 - Copy.jpg)
Additionally, 84% of the respondents said they would use their smartphones to pay for small and medium purchases, such as a cup of coffee or pair of jeans.
Other key survey data points included:
*Credit and debit cards remain the primary method of payment for 63% of all survey respondents, with 6% favoring alternative payment options such as PayPal, and 4% preferring mobile wallet services.
*A total of 54% of the survey respondents are familiar with EMV (Europay MasterCard Visa) technology, a payment method that enhances data security. Of this group, 39% use credit or debit cards that have EMV chips as their primary or secondary payment method; among respondents under 40 years of age, 49% use credit or debit cards that have EMV chips as their primary or secondary payment method.
*More than half of the respondents, 56%, are willing to continue shopping at a store whose credit-card information was stolen; the number of consumers who are less likely to continue shopping at such a store was 44%.
*Among the advantages cited to using smartphones instead of traditional payment methods, speed of use ranked first (34%), followed by freedom from carrying a wallet (29%), access to mobile deals (24%), ease in tracking spending (23%) and safety of personal data (18%).
"The survey data illustrate a typical early adopter scenario--high awareness among younger consumers, which is the essential precursor to mass market adoption," said Mach. "The mobile payment industry is an industry on the cusp, with so many components essential to success, such as EMV and ApplePay, coming into focus for the first time and delivering real value to the end user."
Wakefield Research engaged survey respondents first with an email invitation, followed by a 13-question online survey. Magnitude of variation is approximately 3.1 percentage points. Survey data breakouts are available by gender, age, geographic region (Northeast, South, Midwest and West) and regional character (urban, suburban and rural).
Verifone is a leader in secure electronic payment solutions. It provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets.
Click here to view the infographic in a larger size.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.