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Mobile Payment Adoption Slows Down After Years of Growth

The report revealed an increase in mobile payments, but it was small in comparison to recent trends.

After years of emerging growth in payment methods like prepaid cards and mobile payments, a new survey is saying that there is a small decline in online bill payments as well as both network-branded and store branded gift cards, according to a report from IT research firm IDC.

The study polled U.S. consumers about emerging payment methods and technologies.  The report also revealed an increase in mobile payments, but it was small compared with recent trends, according to EWeek.

“After several years of growth, the market for ‘alternative’ payment methods is now entering a period where adoption gains may come more slowly and where simply providing an alternative isn’t enough. Instead, providers need to offer products that add value beyond the payment,” James Wester, practice director for IDC’s Worldwide Payment Strategies and the author of the report, said in a statement.

When is comes to mobile payments, PayPal is most frequently used by 58.6 percent of the respondents.  However, mobile payment adoption has slowed down in growth.

About one-third (37.2 percent) of respondents reported using a mobile payment method of some kind, but the study considers that to be a relatively modest gain over the last survey.

“In-market adoption of big data and analytics has reached the point where the capabilities and applications these technologies enable are becoming main stream for a growing number of financial services firms,” Michael Versace, research director of IDC Financial Insights, said in a statement. “Yet many do not yet have a set of completely mature BDA competencies across the five critical dimensions that are necessary to effectively reduce execution risks and compete with strong business, technology, and operational value propositions.”

 

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