Category: Mobile Payments

Two recent studies has shown that device users still aren’t ready to shop and pay with their gadgets.

Although smartphones are rapidly making their way into the hands of virtually every American, nowadays, mobile commerce and payments are falling way behind the many other uses that people have for their gadgets.

This, according to the results of two different surveys that looked into the use of mobile devices.

According to research from Informate Mobile Intelligence, the average American smartphone user currently spends about 4.7 hours on his or her device, every day. That represents about thirty percent of their waking time. That research was conducted in December 2014, and shoed that device users in the U.S. are greatly likely to have access to applications for mobile commerce and payments. The reach for shopping apps, at that time, was 59 percent, and for mobile payments apps, it was 49 percent.

That said, despite the reach, mobile commerce and payments aren’t appealing to American consumers as they could.

A second survey, this one by Placeable, which involved the participation of one thousand consumers in the United States, said that while the mobile apps may be there, people simply aren’t using them. That survey determined that 42 percent of smartphone owners had never made a purchase on their device. Moreover, only 9 percent of those who had access to mobile payments said that they actually used them.

The survey pointed out that this also doesn’t necessarily mean that shoppers aren’t using their mobile devices as a part of their purchasing process. The research indicated that 6 out of every 10 consumers will use their smartphones at some point during the shopping process when they are shopping for a product online or even in-store. However, the actual purchase is not being made over that device. That is occurring over PC or at the store’s checkout counter.

While other research has indicated that mobile security could be in the way of the use of these options over smartphones, Placeable suggested that this may not entirely be the case. Nearly 70 percent of participants in the survey said that they were willing to trust shopping over mobile commerce or making smartphone based payments. The reason that they are not using them is that they don’t see the need.

Mobile transactions will be supported by 1,000 Shell station in the United Kingdom

PayPal has teamed with Shell in the United Kingdom in order to facilitate mobile payments at gas stations. Drivers will be able to use the Shell Motorist App or the PayPal App in order to pay for their gas. Some 1,000 Shell stations will accept these mobile payments, which can be made by scanning a QR code. The new mobile payments service will be made available in April of this year.

Mobile commerce continues to gain momentum

Mobile commerce is becoming a powerful force in the United Kingdom, where a growing number of consumers are using their mobile devices to shop online and pay for products in physical stores. PayPal has established a strong foothold in the mobile payments space by offering services that help make mobile commerce more convenient. Convenience is one of the major attractions of mobile payments. In retail, consumers can skip long lines and checkout processes by using their mobile devices. Now, this convenience is coming to gas stations in the UK.

New service could make gas stations more convenient for consumers

PayPal believes that consumers will participate more in mobile commerce if there is a clear benefit in doing so. The new service being launched with Shell may bring more convenience and speed to those that are fueling their vehicles. The partnership between the two companies may also accelerate the acceptance of mobile payments among consumers, offering an example of how mobile commerce can be incorporated into various service sectors.

Partnerships may help mobile commerce overcome its main challenges

Mobile commerce is expected to continue gaining momentum in the United Kingdom. In the coming years, consumers may opt to use their mobile devices to pay for products and services more than they use their credit and debit cards. Cash may also fall by the wayside in the near future, as mobile devices represent an easier way to pay. There are still challenges that face the mobile commerce space, of course, but partnerships between large companies could help the sector overcome these challenges.