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I'm not convinced mobile payments
A survey by Jumio revealed that 68 percent can best more traditional payment
form factors in any of these
of consumers with smartphones or tablets categories, at least in the United
have attempted to use those devices at the States. It doesn't take less time to pull
up an app on a mobile device than it
POS, yet 66 percent of that group reported does to hand over a plastic card or
cash at checkout. (For me, it usually
being unable to complete those transactions takes more time.)
because of obstacles at the checkout.
Similar problems plague other
mobile financial services, too, as I
discovered upon making my first
check deposit using a smartphone.
The online bank I used accepted the
deposit then froze all of my accounts
due to what it deemed "suspicious
activity." What I discovered – after
several days and exchanges with
customer service – was that the
activity deemed suspicious was the
mobile deposit, which had cleared
and posted to the paying account
within just two days.

It seems the Internet service provider
for my PC isn't the same as my mobile
provider. Apparently the bank's
fraud screening procedures aren't
that sophisticated. If it had been
using geo-location technology, for
example, it might have determined
that the phone was being used in the
same exact locale as the PC (in my
home office).

I understand payments (and
especially check payments) better
than most consumers, but I walked
away from this experience scratching
my head. After all, I was putting
money into the bank, not taking
money out, and the deposit cleared
and posted without incident.

No business wants to alienate
customers, merchants and banks.
But unless and until banks make
transacting with a mobile as simple
(or simpler) than paying by cash or
card, mobile payments will be a non-
starter, at least until millennials are
able to amass more economic clout
than their elders.

Pa tti Murphy is Senior Editor of The Green
Sheet and President of ProScribes Inc. She
is also the founder of InsideMicrofinance.
com. Email her at patti@greensheet.com.
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