Mobile Device Payments on the Rise
Recent research from Fiserv indicates more consumers are paying bills, making person-to-person (P2P) payments and using digital wallets on their mobile devices.
The “Expectations & Experiences” survey found many consumers (76%) are turning to this mobile payment technology because they think it is important to have payments delivered in real time.
“Consumers are living more digital lives, and that is being reflected in the way they pay,” said Mark Ernst, CEO at Fiserv. “Bill payments and person-to-person payments from mobile devices are making their way toward the mainstream, while digital wallets are showing slow but steady growth reminiscent of the early days of online banking.”
Key findings of the report include:
- Mobile bill pay is on the rise. It rose from 22% to 28% from 2015 through late 2016. Among mobile bank users, 41% have used mobile bill pay in the last 30 days. The reasons consumers are turning to this technology include the ability to pay bills at the last minute (46%) and receiving mobile alerts about due dates (31%).
- P2P payments have risen from 14% in 2015 to 19% in 2016. Users cite the ability to share household expenses (9%), repay loans or debts to friends and family (7%), and pay rent (6%) as reasons for the increase.
- Digital wallets are growing at a rate similar to the rise of online banking in the late 1990s. 13% of consumers have used a digital wallet in the last 30 days, which is up from 11% in 2015 and 8% in 2014. 15% have used a digital wallet within the past year.
- Even those who aren’t using digital wallets have an interest in doing so. They cite the ability to turn off their payment card in case of fraud (43%) or some other reason (36%), withdrawing cash without their card (28%) and paying someone in real time (26%) as features that interest them.
- Perhaps unsurprisingly, Millennials are more likely to use digital payment services than their older consumers.