Just as bills have primarily moved from mailed paper to digital, bill pay has become more digital, fueled by consumers’ adoption of mobile wallets. PYMNTS’ research found that 95% of mobile wallet users know the bill pay features mobile wallets offer, and nearly one-quarter of consumers pay bills with mobile wallets at least weekly. As a result of the speed and convenience of the method, there has been a 22% increase in consumers’ use of mobile wallets for bill pay compared to six months ago.
With such high levels of awareness, however, it may be underwhelming that just 60% of consumers paid bills this way in the last year. PYMNTS researchers found that the process is hardly foolproof, as 71% of consumers who used mobile wallets frequently reported at least one issue when making bill payments. Many consumers said they do not perceive mobile wallets as secure enough to earn their trust. More than one-third of consumers not interested in mobile wallet bill pay blame security concerns for their disinterest.
These are a few of the facts PYMNTS’ research uncovered. “Digital Bill Payments: Mobile Wallets Gain Popularity, but Hurdles Remain,” a collaboration with ACI Worldwide, details consumers’ experiences with mobile wallet bill pay, including their preferences and frustrations as well as what they hope to see next when it comes time to pay their bills. We surveyed 2,120 United States consumers between March 2 and 7 to better understand their experiences with mobile wallet bill payments.
Key findings from our research include the following.
PYMNTS’ data found that 60% of consumers paid bills using a mobile wallet in the last 12 months. Among more affluent consumers, who tend to be early adopters, bill pay via mobile wallet increased from 55% to 68% during the same period. Millennials, who tend to be comfortable using newer technologies, are the most responsible for pushing mobile wallet bill pay use into the mainstream.
Consumers are generally very concerned about making bill payments quickly, making this a major source of interest in mobile wallets. Thirty-nine percent of consumers said that the ability to make payments instantly is an important reason for paying bills using a mobile wallet.
Forty-two percent of consumers not interested in using mobile wallets to pay bills cite security concerns as the main reason for their lack of interest. These security-conscious consumers present an opportunity for mobile wallet providers to focus on security.
Moves by providers have already cut prior complaints about processing speed in half. The gains could be tremendous if mobile wallet providers can solve the security equation and convert these consumers. Download the report to learn more about the present and future of mobile wallet bill pay.