Study: Mobile Payments on the Rise
Most Americans are making some kind of payment on a mobile device, according to a new study, although concerns about security persist. Find out how associations can ensure security and convenience for their mobile members.
It’s the beginning of the month—time to pay your bills, and chances are you’re probably paying some of them on your mobile device.
More than half of American smartphone users, which is a majority of Americans, make some kind of mobile payment on their phones, according to a new survey by the Credit Union National Association (CUNA). Ease of use was the greatest benefit of mobile payments, cited by more than 90 percent of survey respondents.
The largest group of mobile payment users is between the ages of 30 and 44, followed by those 18 to 29. Women are also more likely to make mobile payments than men, the study found.
Security was the biggest concern among a majority of respondents, suggesting that users will not sacrifice security for convenience, CUNA Executive Vice President Paul Gentile, said in a statement. “While there have been many advances made with mobile security in recent years, respondents’ concerns over security indicate financial institutions and companies in the mobile space must continue to stress their focus on security with their customers,” Gentile said.
To ensure greater payment security for customers, Greg Schaub, executive vice president for business development at mobile-payment-service provider Chase Paymentech, recommended that businesses, including associations, offering the service ensure that the device taking payments is encrypted. It’s also important to research the reputation of the bank behind the transactions.
“Understand that the bank is a reputable business and your funds aren’t going to be delayed or perhaps the service disrupted or, even worse, your customers [inconvenienced] because the application or mobile provider decides to go out of business,” he said.
Done right, offering mobile payments—especially at conferences and face-to-face events—can help associations expand their customer base.
“From a very obvious standpoint, getting untethered from the confines of a brick-and-mortar location, or even a website if that’s how you market, and being able to be out and about, you should be able to have access to more customers and more locations,” Schaub said.