The Biggest Hurdles To Mobile Commerce Adoption

By Pete Rizzo (@pete_rizzo_) 

From SoHo to Silicon Valley, the consensus is clear: Mobile has not only arrived, but taken hold in the consumer marketplace. Out here in America, however, this opinion couldn’t be more detached from the reality.

Forrester Research indicated that in 2012 mobile commerce sales accounted for just $8 billion, or 3 percent of total U.S. eCommerce spending. While this figure has already been surpassed this year, the data still shows mobile commerce is far from ubiquitous. Consumers spent $186 billion on retail eCommerce alone in 2012.

Further, top mobile commerce players such as Google Wallet and Isis have struggled to live up to their lofty expectations, experiencing a host of high-profile setbacks.

Looking ahead to 2014, what are the four biggest factors holding mobile commerce back from becoming the contagious payments solution so many feel it’s destined to become?

4. Consumer trust – With consumers seemingly ready to fork over all of their information to social media sites, consumer trust seems like an odd obstacle for mobile payments. However, a September study from Hyperion uncovered that only about 36 percent of consumers trust banks, phone service providers, retailers and tech giants to be their mobile wallet provider.

The other 64 percent of consumers? They reported that they would trust no one because they would never use a mobile wallet.

3. Demographics – The latest data from Pew Research Center can be easy to misinterpret. For example, the consumer behavior analyst made headlines this August when it announced 43 percent of all Internet users over the age of 65 are now accessing the Internet via a computer or mobile phone.

While encouraging, it’s important to remember this figure only represents Internet users – not the overall population. In a separate study, Pew found that just 85 percent of the population is online.

2. Consumer Habits – When speaking to top execs in the payments industry, you’re bound to hear a lot about an influential demographic – the early adopters, that fabled 1 to 2 percent of the population that simply craves the next new technology.

Doubtless, these consumers exist and have driven huge success stories in the space. However, what may be more important is that a sizable portion of the population has been found by at least one notable researcher to “almost never” deviate from their top two payment types. For most Americans, neither of these two options is mobile.

1. … Want to know the biggest obstacle to mobile commerce? Join us for PYMNTS.com Mobile Commerce Insider Series

Starting November 5, we’ll be offering monthly updates of all that is essential in the mobile, payments, loyalty and commerce space. Those who enroll receive monthly, exclusive access to 12 in-depth reports and 12 digital webinar discussions that provide insight into the industry’s top trends, from loyalty to mobile commerce.

For more details about this initial session, or to enroll in our Mobile Commerce Insider Series, click here.