Tag: mobile payments use

Mobile payments adoption requires incentives

mobile payments consumer incentiveRecent research is showing that if this technology is going to take off, customers need a reason to use it.

Although there is definite growth occurring in the world of mobile payments, there is still a massive amount of potential that is being left unused and a recent study is suggesting that part of the solution to this issue is in offering incentives to consumers.

Regardless of whether wallets, NFC technology, QR codes or other methods are used, consumers need a reason.

The struggle is primarily based on the fact that consumers are currently quite happy with the method and convenience of their cash, credit and debit cards. Therefore, there is not a significant amount of motivation for them to learn how to use mobile payments through their smartphones when they already feel that they have everything that they need.

At the moment, mobile payments have yet to answer the consumer’s question “what’s in it for me?”

The research in a survey of 4,000 people in the United States and Canada has indicated that consumers aren’t necessarily waiting for mobile payments to become more broadly available. Instead, they want to know why using the technology would be of any value to them in the first place. They are concerned about issues such as security, privacy, and convenience – areas where they already feel relatively comfortable when completing transactions at the register.

The survey was conducted by Accenture in order to gain a better understanding of what would motivate Canadian and American consumers to start to use mobile payments as a larger part of their daily lives. What they determined was that making the infrastructure available wasn’t nearly enough. Consumers need to be shown how they can benefit by using their smartphones instead of cash, credit, and debit.

These mobile commerce incentives can be as straightforward ad discounts, rewards, or other value added strategies. The survey has indicated that these incentives will be enough motivation to turn many consumers toward using their smartphones instead of their traditional transaction methods.

Mobile payments services and retailers that understand this fact may be able to implement campaigns and strategies that will appeal to the consumer’s preferences and provide them with benefits that will encourage them to try the technology for the first time, and then become comfortable with using it more regularly, said the study.

Mobile payments and data race may currently have PayPal in the lead

PayPal mobile payments may be the leaderAt the moment, in terms of merchants and consumers, the company may be considered the leader.

PayPal, already a leader in the online transaction industry, is starting to be considered to be the frontrunner in mobile payments, as well, as it boasts the largest estimated number of merchants and consumers within a “digital wallet” sphere.

Furthermore, the company is aiming to expand this possible lead with the addition of new partnerships.

PayPal has just announced that it is partnering with Discover and NCR in order to further boost its mobile payments offerings. The eBay owned company has been a leader in online purchases for fifteen years, but were able to process more than $14 billion in transactions over tablets and smartphones last year.

The PayPal Here mobile payments service has allowed the company to define itself in this channel.

The success that PayPal has had over mobile payments has been considerable enough that they feel that they are starting to chip into the transaction processing sector, which has long been held by major credit card companies. This has also allowed consumers to start to be able to pay for their purchases in a seamless way, using their cards, but without having to actually carry the plastic.

The PayPal Here mobile payments card reader is also rapidly becoming popular among small businesses. This is because it allows those companies to use any smartphone or table to have a small card reader plugged into its audio jack without the need for large POS equipment or its associated rental or purchase fees.

Now that the Discover partnership has been added to PayPal’s growing set of deals, it will mean that the company will be expanding to 2 million more brand name locations by the end of this year.

That said, one of the mobile payments company’s primary goals is to eliminate the need for a card reader altogether so that the app can be used on consumer smartphones in order to replace the plastic cards. Though this service is available at a few thousand stores already, the extra two million will exponentially grow this opportunity.