Author: BWild

Smartphone users in the US adore mobile payments

The Credit Union National Association has released the results of a new survey that show mobile payments are gaining ground in the U.S. Mobile payments have been growing more popular among consumers for the past few years, but exactly how popular this new form of commerce has become is an oft debated topic. Many people favor the convenience associated with mobile payments, but have concerns regarding the safety of their financial information. The new survey aims to shed some light on the issue.

More than half of smartphone users participate in mobile commerce

According to the survey, more than half of smartphone users in the U.S. have made mobile payments. The survey defines mobile payments as any transaction made with a mobile device and shows that the majority of people making mobile payments praise the convenience of being able to purchase products from their smartphones. The majority of those making mobile payments spend more than $30 on average per purchase, suggesting that people are more willing to spend money when participating in mobile commerce.

Security remains a top concern for many consumers

Security remains a major concern for those interested in mobile payments. Some 77% of respondents claimed that the security of their financial information was a top priority. Security concerns often determine whether a person will make a mobile payment or not and the survey suggests that most consumers tend to be cautions when it comes to spending money through a mobile device.

Consumers expected to grow more interested in mobile payments over time

Despite the concerns surrounding mobile commerce security, more consumers are showing an interest in shopping online. The availability of mobile Internet access has made it easier for consumers to shop online using the smartphones and tablets, thereby exposing them to mobile commerce initiatives coming from retailers and other businesses. Consumers are expected to continue growing more fond of mobile payments as better services become available to them, especially if these services can help placate fears regarding security.

According to industry leaders, the technology is now starting a wave in the country.

According to some of the latest data out of Canada, mobile payments, such as money transfers, are starting to pick up quite quickly, as the industry reaches the close of its second year within the country.

Contactless transactions, specifically, are starting to take hold inside that country.

Though the case on the other side of the world, in India, is showing a massive hesitation to adopt mobile payments technology, the exact opposite appears to be happening in Canada. The true strength in this part of the industry appears to be in contactless technology – NFC technology. Tap and go is catching on and Canadians are starting to become accustomed to it.

MasterCard has now ranked Canada as the second most prepared country for mobile payments.

The ranking from MasterCard placed only Singapore ahead of Canada in terms of being prepared for the widespread adoption of mobile payments. It assigned a score of 0 to 100. Canada scored a 42, whereas Singapore received a score of 45.6. The global average was 33.2.

That said, despite the widespread adoption of smartphones in India and its tremendous population, it is still lagging behind the world at a score of only 31.5. This ranking was the result of the data accumulated by MasterCard in a survey that involved the participation of mobile networks, banks, and governments. It revealed that in the Mobile Commerce Clusters score, Canada has fared very well.

At the same time, aside from mobile payments, the survey also identified a number of other trends. For example, credit and debit cards are continuing to grow their share of the overall industry over other methods such as cash and checks. Approximately one in three total transactions are done by cash, and card transactions are picking up considerably within the sound financial system of that country.

Smartphone penetration is also considerable in Canada. That, along with the cooperation of the government, mobile networks, and banks, has meant that this market is increasingly prepared to take part in mobile payments on a mainstream scale.