NEW YORK—It’s going to take better security and more incentives and rewards to keep consumers gravitating toward mobile payments.
That is one of the key findings from Accenture's 2015 North America Consumer Digital Payments Survey that found that while awareness and knowledge about mobile payments are increasing rapidly, usage is relatively stagnant.
“Accenture surveyed 4,000 smartphone users in the United States and Canada and found knowledge about mobile payments jumped to 52%, a substantial increase from 42% a year ago,” explained LowCard.com’s Lynn Oldshue. “But only 18% of consumers in North America are using mobile payments, only a 1% increase from the previous year.”
The study shows that Millennials and high-income consumers are adopting mobile payments more quickly than other groups. Thirty-eight percent of those who make at least $150,000 a year are using mobile payments each week. Twenty-three percent of Millennials are using this payment type at least once a week. For other age groups, the rate is only 18%.
“Though it’s clear that consumers are aware that they can make payments through their phones, continued use of existing payment methods—such as credit cards and cash—and slow retail adoption of modern card readers have caused usage levels to remain stagnant over the last year," said Robert Flynn, managing director for Accenture Payment Services in North America.
To increase mobile payment adoption rates, the survey found that consumers wanted better security, incentives and rewards, said Oldshue. “Nearly 80% of those already using mobile payments said they would increase their usage if they were offered discounts or reward points. For those not making mobile payments, 54% said they would start if they were given a coupon or an incentive.”
Currently, Apple Pay accounts for 68% of all mobile payments in U.S. stores.