New Survey Finds Mobile Payment Adoption Slow
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Even though mobile payments have been available for a decade, consumers are still opting to pay with their credit cards, according to a recent study from Citi Cards. In fact, only 20% of those surveyed currently use a mobile wallet.
Millennials are most likely to use this technology. Nearly two-in-five Millennials use a mobile wallet, and 44% of the respondents in this age group said they are likely to start using a mobile payment app within the next year.
Part of the reason consumers have been slow to adopt mobile payments may be because customers have more faith in established credit card companies than they do with mobile products. 71% of the survey respondents said they would trust an established bank to input their card information into a mobile payment service. Only 18% would trust a company that specializes in mobile payments, and a mere 11% would trust a company that manufactures digital devices.
According to Citi’s The Payments Evolution: Insights from the 2016 Citi Cards Consumer Perspectives Study, an easier payment process may influence more consumers to adopt mobile payment technology. 72% said paying with a smartphone “should be as easy as texting.” 86% of Millennials said this should be the case, which shows this group values ease-of-use even more than other generations.
Citi also examined what factors drive customer loyalty, and found that 67% said rewards programs influence their decisions, which out-ranked interest rates (54%) and a sign-on bonus (28%). In fact, rewards programs are increasingly important. 86% of the respondents said such a program is more important to them today than it was five years ago.
Cash is the reward that most customers desire. Nearly half (47%) have redeemed their points for cash in the past year, followed by gift cards (37%), statement credits (24%) or travel (23%). Customers are also more likely to redeem their rewards for every day purchases (67%) rather than luxuries (33%).