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Mobile Payment Adoption Slows Due to Lack of Added Value

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Put that phone away. After years of surging growth, mobile payments adoption has slowed to modest levels, according to a new survey from IDC Financial Insights. The study on consumer payments was released April 21. One focus of the study is looking at the use of “alternative” payment methods such as prepaid cards and mobile payments. Respondents were all customers with traditional checking accounts. Slightly more than one-third (37.2%) of respondents said they used mobile payments, but that is a “relatively modest gain over the last survey,” according to the report. The previous survey, in 2012, reported 34% usage. PayPal topped the list for mobile payments providers, with 58% of those respondents using mobile payments saying they used PayPal. Apple’s iTunes and Amazon Payments were next, with about 40% of respondents using each of these mobile payments methods. Google Wallet followed with about 25% usage. The report also noted that online bill pay usage declined slightly, from 73% to 70%. “After several years of growth, the market for ‘alternative’ payment methods is now entering a period where adoption gains may come more slowly and where simply providing an alternative isn’t enough,” said the report’s author James Wester,  practice director for worldwide payment […]

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