Mobile payments are on the rise
The Mercator Advisory Group has released a new report concerning consumer payments and banking. The report highlights the growing popularity of mobile payments among the U.S. population, showing that mobile commerce is becoming very common among young adults and certain ethnic groups. Mobile payments are often considered a subject for the tech-savvy and given the fact that younger generations are growing up with a strong connection to smartphones and tablets, as well as other forms of technology, these people could be significantly more comfortable with the concept of mobile commerce than older adults.
Young adults show comfort with mobile commerce
The report shows that young adults show the strongest interest in mobile payments in the U.S. Approximately 75% of young adults are reported to have their own smartphones or tablets, compared to the 55% of adult households that own such devices. The report shows that young adults are very likely to use their mobile devices while shopping, using the technology available to them to find better deals or to find out more information on products they are interested in. Mobile payments are becoming a major interest with these consumers, many of whom believe that mobile commerce is significantly more convenient than traditional forms of commerce.
Mobile commerce platforms prove inclusive for wide range of consumers
Smartphone ownership is also growing among certain ethnic groups. Those of Asian, Latin, and African descent outnumber others when it comes to smartphone ownership. Moreover, these consumers have also expressed a great deal of interest and comfort with the concept of mobile payments. For many immigrants to the U.S., mobile payments are considered easier as many mobile commerce platforms can easily calculate currency conversions while also removing the need for physical currencies.
Security remains a major barrier for mobile payments
While mobile payments are gaining popularity, all consumers have expressed concerns regarding the security of their financial information. Mobile commerce is not only a realm for consumers, as it has proven quite attractive for hackers. The threat of having financial information stolen and exploited has led many people to be weary of mobile payments.
The Isis mobile payments solution has undergone a lengthy trial period for three quarters of a year. According to the chief executive officer of Isis, Michael Abbott, “Over the past nine months, we have proven the power of an open platform, creating an ecosystem of literally hundreds of partners dedicated to making mobile commerce a reality.”