Mobile devices are without doubt one of the main customers’ points of contact for commercial organizations. Since mobile devices have become integral to our daily lives, they also act as a key method for businesses to boost customer interaction, provide services and facilitate payment.
In the past few years, there has been a massive growth in the mobile market and with a particular focus on mobile-based payments. Although mobile payments are growing, however, the market is far from widespread acceptance. According to the research firm eMarketer In 2016, 38.4 million Americans 14 or overused their smartphones to make payments for checkout at least once over the past six months. It’s surprising that this figure is only 19.4 per cent of U.S. smartphone users. Similar to that a recently conducted study by the consulting company First Annapolis found that only 5percent of users used a mobile payment account at least one time per week. So, what are the key causes of slower than expected mobile usage rates across the U.S.?
Customers are Not Used To Contactless Card Transactions
Many consumers are not familiar with contactless card transactions. This is why they do not realize the benefits that mobile payments can provide. Contactless cards are widely used in Europe, where consumers have much more experience with contactless payments. In the U.S., however, there is still some scepticism regarding the security of contactless payments and many people still prefer to use cash or credit cards when making purchases.
The U.S. consumer market is very diverse, so it requires innovative and customized solutions to meet everyone’s needs and preferences. The most successful mobile payment methods are tailored to specific segments of the population and designed to provide customers with a seamless and convenient user experience while also providing businesses with valuable insights on consumer behaviour and trends in order to better improve their services or products for their clients’ needs.
In addition, it’s important for businesses to consider how consumers feel about mobile payment systems before implementing them into their operations because it can take time for consumers to get used to mobile payments. The speed and convenience of mobile payments can make a big difference.
Mobile payments are paying for goods and services using a mobile device such as a smartphone, smartwatch, tablet or other electronic devices. Mobile payment systems use near-field communication (NFC), radio-frequency identification (RFID), QR code, fingerprint recognition, and other wireless technologies to allow secure payments from mobile devices.
The Acceptance Infrastructure is Not Yet There
In order to make mobile payments successful, a lot of infrastructure needs to be built. The technology itself is not the issue. In fact, it has been around for years. It is the acceptance infrastructure that needs to be built. For example, in order for a customer to use their mobile phone at a store, the store has to have a special piece of equipment that allows consumers to pay with their phones. The problem is that many businesses do not feel that there is enough demand right now for them to spend the money on such equipment. If enough people start using these mobile devices as payment methods, then eventually businesses will see the value in having this equipment installed and they will start accepting these types of payments.
There are also concerns about security and privacy issues due to mobile payment systems being a relatively new technology in the U.S. Many consumers are concerned about having their credit card information stored on their phones because they think it could be hacked or stolen by others who may have access to their phones. There is also the concern that mobile payment systems could be used for identity theft or for stealing personal information about a consumer.
In addition, some people do not see the need to have a mobile payment system because they do not feel that the technology is advanced enough to handle all of the transactions in their lives. For example, many consumers feel that they would only use these services to pay at restaurants and stores but they would still want to use cash or credit cards when making online purchases.
There are also some misunderstandings about how mobile payment systems work. Some consumers think that these services are just like credit cards and debit cards where they can pay back what they spend over time. The problem is that with mobile payments, you generally do not have any type of interest rate or grace period when paying back what you spend on your phone bill. For example, if you buy something on your phone and then fail to pay it off within your bill’s grace period, you will be charged interest on the purchase.
Lack of Consistency at Checkout
When it comes to mobile payments, consumers have had a lot of problems with consistency in how the system works. The problem is that there are many types of mobile payment systems available from different companies and the way in which the systems operate is not always uniform. For example, some services allow you to store multiple credit cards on your phone for use at stores but other services only allow you to store one credit card on your phone. In addition, some services require you to enter a PIN number each time that you make a purchase while other services do not require this type of security measure.
Additionally, many consumers have problems with the fact that they need a separate piece of equipment in order to use their phones as payment methods at stores. Some people feel that they should be able to just use their phones without having to spend extra money on special equipment or purchase additional equipment like cases or apps. The problem is that even if people want a case or an app for their phone so they can use it to pay, they may not be able to use their phones in the same way that they use them now. For example, if a person has a case on their phone that allows them to make mobile payments, the case may make it harder for them to access their phone’s camera or other features. If a person purchases an app for their phone so they can make mobile payments, they may have to spend money on a new phone if their current phone is not compatible with the app. The bottom line is that consumers who want to use their phones to make mobile payments are going to need to purchase extra equipment in order for their phones to work properly.
Another concern for consumers is that some companies may not be securing their customer’s personal information. For example, some consumers worry about how secure it is for companies like Google and Apple to store their credit card information on the cloud. The problem is that people may be less likely to use these services if they feel as though there are potential security threats involved in using them. In addition, some consumers have privacy concerns regarding how merchants are allowed to use the information that they collect from customers when they make purchases on mobile devices. For example, some people do not want companies like Google and Apple to have access to everything that they buy online or everything that they buy at retail stores.
Some people are also concerned about the amount of time that it takes for these companies to process payments. For example, some people feel that if they make a purchase at a store, they should not have to wait more than a few seconds for the payment to be processed. The problem is that when consumers pay with their phones, the payment may take longer to process than when they use cash or credit cards. In addition, some consumers feel as though they should not have to enter their PIN numbers each time that they make a purchase with their phones. Some people feel like this is too much work and prefer other methods of payment so that they do not have to enter into these types of security measures each time they make purchases.
Perceived Security Threats
Another concern that consumers have about mobile payments is that they are worried about security threats. For example, some people feel as though there is a high risk of identity theft when they use their phones to make purchases.
The problem is that if a person’s phone gets stolen, the thief may have access to all of the information stored on their phone including their credit card information. In addition, some people worry that if they lose their phones or if the batteries die on them, they will not be able to buy anything with their phones until they get new ones. This can be especially problematic for people who rely on their phones in order to pay for items and services every day such as food and clothes.
The bottom line is that consumers are concerned about privacy and security issues regarding mobile payment systems. One solution could be for companies like Google and Apple to build better security into these systems so that consumers can feel more comfortable using them. Another solution might be for companies like Google and Apple to develop better security features so that consumers will feel more comfortable using their phones to make purchases.
What to Do When it Doesn’t Work Out With Mobile Payments
The main problem with mobile payments is that people are not using them. This means that the companies who are trying to make money off of mobile payments aren’t getting any money.
The biggest reason why people don’t use mobile payments is that they feel like they’re unsafe. A lot of the time, this is because they’ve heard about some kind of breach in security, or maybe their bank account has been hacked.
In order to convince people to use mobile payments, it’s important to help them feel more comfortable about using these kinds of services by providing more security features.
Another problem with mobile payments is that there are a lot of different devices and apps, so it’s hard for one company to develop a payment system that works for all devices and apps. The best way around this problem would be for companies like Google and Apple to develop better security features so that consumers will feel more comfortable using their phones to make purchases.