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TheMobileBuzz
Mobile payment awareness inches forward
A ccording to a survey conducted by Accenture generation functionality; it's like running an Atari game
Research, regular use of mobile payments on an Xbox system – amazing underlying potential, but
remained flat at 19 percent, while mobile pay- only providing a very basic offering," Abbott stated.
ments awareness increased to 56 percent, up
4 percent from last year. The survey also revealed that Accenture's survey identified several barriers to adoption.
60 percent of North American consumers still use cash Of the 64 percent surveyed who have never used mobile
at least weekly to make purchases at merchant locations, payments, 37 percent said they had not done so because
down 7 percent from 2015 and marking the most signifi- they are currently satisfied with cash and plastic to meet
cant decline in tracking history. payment needs. Another 21 percent were uncomfortable
registering payment credentials into their smartphones,
For the report, 2016 North America Consumer Digital and 19 percent were concerned unauthorized transactions
Payments Survey: The Edge of a New Frontier, Accenture might occur using mobile schemes.
surveyed more than 4,000 U.S. and Canadian smartphone
users regarding how they want to pay now and in the As for trust, Accenture found that 73 percent of North
future. Although cash payments have declined, cash American consumers trusted traditional card providers to
and plastic still dominate, with debit card payments at provide mobile payments; 63 percent trusted alternative
merchant locations holding steady at 58 percent and credit payment providers like PayPal; 62 percent felt comfortable
card usage up 3 percent, at 53 percent for 2016. with established retail banks, followed by large tech
companies at 59 percent.
"We are seeing a gradual increase in consumer awareness
of mobile phone payments options; however, adoption has Unique, differentiated offerings required
remained flat over the past few years," said Robert Flynn,
Managing Director of Accenture Payments in North A number of banks have already deployed mobile
America. "Consumers are content to use cash and plastic payments in tandem with mobile banking apps, and of
for their everyday transactions, and while the use of cash consumers surveyed who have used mobile payment
is declining overall, it is the most commonly used form of apps in store, respondents most frequently chose to use
payment – and consumers expect it to remain so in 2020." their bank's mobile app, which comprised 26 percent of
mobile payment users; 76 percent indicated satisfaction
No real problem to fix with the experience.
Accenture confirmed what others have speculated, that Still, more needs to be done to attract users. "Consumers
mobile payment offerings have yet to compel consumers expect more in today's fast-paced digital environment;
to switch from traditional payment methods. "The just the ability to tap-and-pay is not enough," Abbott said.
existing system isn't broken, which is why consumers "Payments providers need to bring the traditional card
are not making a mass-move to mobile phone payments to life and create a real-time interactive experience for
adoptions – the incentives are not there yet," said Michael consumers."
Abbott, Managing Director of Accenture Digital Financial
Services, North America. This is especially true for early adopters, who tend to
be millennials and people earning $100,000 and above
While mobile payments have been slow to take off, annually after taxes, Accenture noted. It found that 52
alternative digital payment methods have steadily gained percent of those surveyed in both segments considered
momentum. Use of PayPal, for example, has increased themselves early adopters of technology. In the wave
4 percent in the past two years to 18 percent, Accenture behind early adopters, 20 percent of consumers overall
noted. expressed interest in using smart devices to initiate
payments.
Many believe mobile payments are still nascent. "Today's
mobile phone payments options provide basic, first- "Millennials and higher-income individuals may be low-
hanging fruit for payments providers looking to increase
adoption, but there is also a vast amount of untapped
opportunity with consumers who are becoming more
familiar with digital technologies and the rewards and
convenience it affords," Flynn said. "As open banking
becomes more prevalent, driven by APIs, consolidated
customer data will provide a full picture of the customer,
giving payments providers the information they need to
create unique and differentiated offerings."
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