Mobile Payments Are on the Rise
Consumers are more connected and more mobile than ever, and the constant change in technology is fueling a craving for new ways to make payments. Two recent studies bring good insight on connected consumers, how and why consumers pay the way they do and what the future holds, including the desire for a better, more seamless buying/paying experience.
A study conducted by Visa and PYMNTS.com focusing on connected devices – what consumers have today, how they use them to pay and how they’d like to use them in the future to pay – found that consumers are well connected, owning on average more than four connected devices (e.g., smartphone, computer, tablet, video game console, activity tracker, voice-activated devices). Connected consumers are increasingly buying more online, including the basics, and expressed data privacy and security as their top concerns.
Saving time was suggested as a driving force behind consumers using connected devices to pay – 83 percent said using connected devices to pay will save time and/or reduce frustration when making a payment. Saving money and improving quality of life were other important factors. There’s also a strong interest from consumers to use connected devices to buy things as they go about their day-to-day activities and more than 66 percent see the likelihood of these devices helping them multitask.
Fiserv Inc.’s Expectations & Experiences consumer trends survey found that online and mobile payments have taken over as the majority (59%) of all bill payments and that paying bills is the top reason to use online banking. Adoption of mobile bill pay increased 6 percent from 2015 to 2016 and is expected to rise as consumers become more familiar and comfortable with this convenient payment channel. In addition, the number of online banking users who use online bill pay to receive and/or pay bills rose from 64 percent to 75 percent.
Another finding that may not be too surprising is that millennials are the most connected and embracing the latest ways to pay faster than the rest of the population. They are described as highly active with all digital payment channels ranging from online banking and mobile bill pay to digital wallets and person-to-person payments.
Thanks to the rapid advancements in technology, people are growing accustomed to an always-on mentality and want things to happen instantaneously, including payment delivery. Mobile bill pay may be the best solution today to pay anytime, anywhere, but there are likely more options on the horizon.
Read the studies: