Payment Execs: Consumers Aren’t Compelled Yet to Change How They Pay (Nov. 10, 2014)
One of the biggest obstacles to consumer adoption of NFC- and EMV-enabled mobile payments over the next 12 months is the lack of a compelling enough reason for consumers to change how they pay, according to a recent survey of payment executives. Nearly half of the respondents (48.4 percent) said consumers see no reason to change, according to the survey by the BayPay Forum, a Redwood Shores, Calif.-based network of more than 9,000 payments professionals and analysts. BayPay polled approximately 200 payments executives about why consumers might not adopt NFC/EMV mobile payments in the next 12 months.
More than 23 percent of respondents said consumers won’t use NFC/EMV mobile payments because of a lack of understanding about how they work. Security was reported as a concern with 12.5 percent of the respondents. Other barriers included “low perceived value vs. traditional payment methods” at 7.8 percent, 5.5 percent said NFC/EMV mobile payments weren’t how they were used to paying, and 2.3 percent cited the high cost of new NFC-enabled devices.
“The availability of working NFC readers … coupled with the current low use of mobile phones for payments could mean that adoption will take longer than a year,” said Daniel Chatelain, founder and managing director of the BayPay Forum. The survey, which was conducted over five weeks, began before the launch of Apple Pay. “This may have had an impact on the survey, but it’s clear that the belief is that consumers will continue existing behaviors for at least the short term,” Chatelain added.
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