Would You Use Your Smartphone To Pay?

Published: 14 March 2012 By Julian Stone Leave a Comment

Using a smartphone to pay for good and services is increasingly common but a new survey shows that many consumers will avoid paying in this way. Why?

Smartphone mobile payments

According to a survey by Vouchercodes.co.uk, over 60% of consumers would avoid paying for goods and services via their mobile phone.

Whilst a further 17% would be interested in doing so, they would be worried about the systems working.

Not good feedback perhaps when such mobile payments systems have the potential to revolutionise the way we shop.

The most common reason for avoiding mobile payments were fears over safety, a worry about the security of the technology. Around one in five would worry about losing their mobile and being stranded without phone or money.

Not surprisingly younger consumers would be more comfortable using their phones as payment tools than older consumers. Interestingly, more men than women would embrace mobile payments.

The wariness around these technologies may be explained by the lack of information about how the systems that are out there. Well over half of respondents were unable to name a single service that lets them transact through their mobile, showing there is still a lot of work to do before the technology goes mainstream.

Duncan Jennings, co-founder of VoucherCodes.co.uk commented: “Mobile payment technology is already widely used in other parts of the world and we can expect the UK to join the party sooner rather than later.

“The flexibility of the technology will offer a huge range of benefits for consumers, from easy to manage electronic receipts, to location based offers and discounts that get sent to a shoppers phone when they enter the store. The possibilities for mobile payments are endless and could revolutionise the shopping experience.

“But he added: “While the number of outlets where smartphone payment is possible increases every day, providers need to start engaging with the public, allay their concerns around security and educate them on the benefits of this exciting new technology.”

MoneyHighStreet comments: “As with all things new or indeed involving change, there is a period where there will be early adopters before the mainstream feel comfortable to ‘get on board’.

“Online shopping for example took a while to get into the mainstream but now, whether it be to use such as Amazon for a birthday present or Sainsbury’s for the weekly shop, it is a way of life for many.

“How could we have done without it is the cry from some even. In fact online shopping now accounts for a quarter of debit card spend.

“Moving to mobile payments is growing in popularity but clearly it’s not truly mainstream yet. Allaying security worries is of course vital, as indeed is making sure consumers understand how they can make such payments.

“It might not be there yet, but what is certain is that mobile payments will become a highly used payment mechanism in the not too distant future.”

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