Consumer awareness of mobile payments is on the rise, but that doesn’t mean consumers are more inclined to make mobile transactions. In fact, while 41 percent of North American smartphone users are aware that their devices can make mobile payments, just 16 percent have engaged in such activity.
That’s just one of the more telling findings from Accenture’s recent study on mobile payments adoption, titled, “Driving Value and Adoption of Mobile Payments – Consumers Want More.” The study surveyed over 4,000 respondents in Canada and the U.S., and aimed to discover the tools and features that will encourage consumers to help bring mobile payments to scale.
While respondents gave diverse answers about their experiences and perceptions surrounding mobile payments, one trend became clear.
“We found that the services that they’re most looking to use on their phone include not just payments but tracking receipts, managing their personal finances as part of that payment experience, and showing proof of insurance, as well as their drivers license, on their phone,” explained Neil Hickey, North American mobility lead for financial services at Accenture. “Financial incentives and mobile-based financial management tools could increase consumers’ use of smartphones as payment devices.”
PYMNTS.com spoke with Hickey to learn more about the consumer adoption of mobile payments, and the barriers that remain in one of payments’ hottest industries.
While Accenture’s survey highlighted what consumers felt was lacking in terms of mobile phone financial functionality today, it also pointed out one of the biggest reasons why some consumers wish to avoid mPayments all together: security.
“Security concerns are the greatest barrier to consumer adoption,” Hickey said. “In our research over 45 percent of respondents said they are not using their smartphone today for mobile payments because of concerns around security. “
To assuage these fears, the onus is on those in the mobile payments ecosystem to educate consumers, and to show them the safety and utility of using their phones as financial tools.
“For mobile payments to achieve widespread adoption, it’s our view that consumers must be educated about the fact that mobile payments are secure, they’re convenient, and not only do they offer a new payment option, but a wide variety of payment and value-added services that can make their lives easier and simplify how they manage their finances.”
To hear more Hickey on Accenture’s findings, listen to the full podcast below.
*If you have trouble with the audio player above, click here.
Or to read a transcript of the podcast, click here.
To access the Accenture Payments Transformation Series, visit Accenture here.
Neil Hickey
NA Mobility Lead – Financial Services
Neil Hickey is the North American Mobility Lead for Financial Services in Accenture’s Mobility Practice. In this role Neil is responsible for all mobile related client initiatives across Banking, Capital Markets, Insurance and Payments.
Neil has over 18 years of experience in sales, consulting, development and delivery of mobile services and innovation for Financial Institutions, Mobile Network Operators and Retailers. He is an industry expert on global mobile trends, mobile and wireless technologies including mobile phone operating systems, wireless transport and payment standards.
Bi-lingual in English and Mandarin Chinese, Neil holds a Bachelor of Arts Degree from Hofstra University and a MBA from the University of Delaware.
Email Neil Hickey with questions at paymentservices@accenture.com.
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