Mcommerce and P2P the Biggest Drivers for Mobile Payments, Says a Survey

Recently YouGov, a global Internet-based market research and data company, did a survey on the number of smartphone owners using mobile payment service in the US. The survey also covered the nature (type) of mobile payments done by smartphone owners. These results were based on a field survey done in April, 2015 among 1,062 adults (18+).

According to the survey, the main driver for mobile payments is e-commerce or buying online (m-commerce actually). Out of the sample size of 1,062 adults in US, 48 % have used a mobile payment service for buying online. The second most used mobile payment service by smartphone owners is for peer-to-peer transfers. Out of the sample size, 53% was driven by peer-to-peer transfers. Out of that, 18% accounts for people transferring money between own accounts (for various applications, charges, etc.)

Out of 1,062 adults, 13% say that they have used mobile payment services for the products and services used by them, and 9% have received money for the product and services provided by them. To process a transaction in a physical store, 9% have used their smartphones for a mobile payment service. For receiving money related to a business of a product or a service, 8% have used a mobile payment service. In businesses where large values of transactions take place, the number of people using a mobile payment service is less than 10% which clearly shows that the mobile payment service is falling short of being able to make its mark in the payment space. Out of the sample size, 1% use the service for other reasons. The most important point to notice is that 46% of the smartphone owners said that they do not use mobile payment services for any activity.

According to eMarketer, the estimated number of users of US proximity mobile payment (a point-of-sale POS transaction made by mobile device as a payment method) will be 22.6 million in 2015 which accounts for just 12.7% of all smartphone users. The company estimates that by 2018, more than one-quarter of smartphone users (or 57 million individuals) will make POS transaction via mobiles.

According to a survey by Cowen and Company in February, 2015, out of the total mobile spending each month, the mobile payments figure is slowly increasing. US smartphone owners used POS mobile payment services for 16.2% out of the monthly spending in February, 2015 compared to last year’s figure of 15.7 %.

According to different surveys conducted by different companies, it looks like mobile payments are catching up. There are many factors because of which some people are not using mobile payment services. One of the most important concerns regarding adoption of any technology is the security. The customers are reluctant towards mobile payment adoption as they don’t seem to be sure about the security of their data. The companies need to work towards it and assure consumers about the security of their financial details so that adoption of these services are looked upon.