This type of payment is starting to become more popular in the UK, with a growing number of brands in the market. Consumers are able to use their smartphones to pay for goods and services in a growing number of stores in the UK. But how long will it take this technology to become main stream?
This type of payment is starting to become more popular in the UK, with a growing number of brands in the market. Consumers are able to use their smartphones to pay for goods and services in a growing number of stores in the UK. But how long will it take this technology to become main stream? A new survey has shown that almost two-thirds of consumers would avoid paying in this way, even if they were able to. The research from VoucherCodes.co.uk surveyed 2,000 British adults in March 2012 and found that 60% of respondents would avoid making payments all together, while a further 17% were interested in the technology but worried about whether it would work correctly. One of the most common concerns (for 36%) was the technology’s security. The research pointed to a lack of consumer awareness about the technology. More than half (55%) could not name a single brand. Only 20% had heard of Google Wallet and 12% knew about MasterCard PassPay. In terms of consumer trust, while Visa’s NFC, has low awareness, the brand did inspire the most consumer trust (for 30% of respondents). PayPal (20%) beat MasterCard (18%) in terms of trust, which may be because of PayPal’s current reputation as a provider of online payment. Apple and Google were the least trusted brands (with only 6% and 4% respectively). Not surprisingly, younger consumers would be more comfortable using their smartphones to make payments, but the research also found that more men than women would embrace the technology. Overall, it seems that mobile payment providers have a long way to go before smartphone payments become main stream. It may be that this is a solution without a problem, as consumers don’t mind carrying their credit card around with them. There is also a lack of information about different systems. Consumer awareness is a key success factor and current brands need to win the trust of the market. Duncan Jennings, co-founder of VoucherCodes.co.uk, summed up the research, “While the adoption of mobile payments is very much dependent on UK retailers investing in NFC enabled point of sales technology, providers of NFC enabled services need to start engaging with consumers to familiarise them with this payment model. “With NFC and other mobile payment systems still very much on the fringe in the UK, it’s no surprise to learn that most people are confused and a little wary about adopting the technology. However while low levels of awareness are clearly a challenge for service providers, they also represents a massive opportunity for brands to win the trust of consumers and cement their position in this increasingly competitive space.” Let me know your thoughts on this by leaving a comment below.