BIRMINGHAM, Ala.—The road ahead for mobile payments may still be a long one, according to a new study.
Research from the marketing firm Placeable indicates that 90% of consumers won't use mobile payments when available, and a surprising 42% of consumers have never made a purchase on their smartphones.
Bill Hardekopf, CEO of LowCards.com, says the report indicates “the mobile payment industry may have a more difficult time than expected breaking into mainstream America.”
The study looked at more than 1,000 consumers to learn about their mobile commerce behaviors, and the research showed a “serious lag in consumer adoption despite the growth of the mobile industry,” said Hardekopf.
Placeable found over 40% of search engine requests come from smartphones, and the average person spends 151 minutes a day looking at his or her phone. 70% of consumers said they trusted mobile payments, and 71% of consumers own a smartphone.
“Thus, it seems that security is not the issue that is keeping consumers from making mobile payments. Rather, it may be a matter of convenience. Most of the people who said they trusted mobile payments just didn't see a reason to use them,” Hardekopf said.
Mobile optimization plays a partial role in the lack of digital purchases, with 30% of consumers saying they will not purchase from a website on their smartphones if it is not properly optimized. 60% of consumers say they use their phones to find products to purchase online and in stores. Online retailers now have to work to convert those shoppers into buyers.
“While smartphones are ubiquitous today, our research discovered that consumers’ purchasing habits have been slow to adapt,” Michael Bevan, director of marketing at Placeable, said in a statement.
The study found that discounts and promotions may be ways to convince shoppers to utilize mobile payments.