Mobile payments are considered the next wave of the mobile revolution, but no mobile payment company or service has been adopted by consumers on a widespread scale. A new survey shows that the biggest obstacle to this adoption is poor user experience, but there is a promising future for new payment systems.
“The Payments Innovation Jury Report 2013” reports that 40 percent of leaders in the payment sector felt that “the biggest threat” to widespread mobile payment use is “poor user experience/no value-added experience.”
Comments included in the report indicate that mobile designers for payment systems are responsible not just for creating a great user experience, but also one that makes users feel comfortable when making financial transactions.
“Users may not naturally see a smartphone as a wallet,” was one comment from a survey respondent, while another specified that mobile payments must offer consumers more than their current payment systems to be effective: “Creating a ‘digital shadow’ of a card experience is a waste of time and effort. It has to and can be so much more.”
A similar report published two years ago showed that respondents felt that the adoption of mobile payments was “just around the corner,” though there have yet to be any significant transaction volumes.
However, the leaders see the future of mobile payment options as bright, spurred by the widespread adoption of smartphones and tablets. In fact, 52 percent said that the increasing mobile population is the biggest technology trend that will lead to widespread use of mobile payment systems.
Many industries are attempting to take advantage of the coming payment innovations, but the report respondents overwhelmingly see the future of the payment industry in new technology. Seventy-two percent said that “new market entrants” will do the most to drive innovation. Companies mentioned as new market entrants range from card processing companies such as Square to new bank models from companies like Simple. New services from tech giants such as Apple, Amazon and Google are also mentioned as movers in the payment space. Few respondents see innovation coming from traditional financial institutions including retail banks and payment processors.
Another question on the survey asked when smartphones will be used for payments instead of credit or debit cards. While 32 percent said this would happen in the next three years, 24 percent said they believed it would not happen in the foreseeable future. One interesting comment pointed out that cash, checks and cards are currently used side by side as payment systems, with none ever completely replacing the other. If this precedent holds, of course, we could see mobile payments as just another payment option in addition to those that already exist.
Mad Mobile is the leading provider of mobile-first solutions for the world's top companies and retailers.
Looking for a technology partner who can deliver amazing mobile solutions across multiple mobile interfaces?