Mo­bile Pay­ments soar as Euro­peans em­brace new ways to pay

Malta Independent - - NEWS -

Ac­cord­ing to Visa’s 2016 Dig­i­tal Pay­ments Study, the num­ber of con­sumers reg­u­larly us­ing a mo­bile de­vice – whether a smart­phone, tablet or wear­able – to make pay­ments has tripled in the past year. Cur­rently, 54% of con­sumers sur­veyed reg­u­larly use a mo­bile de­vice to make pay­ments for a range of ac­tiv­i­ties, com­pared to just 18% who were asked whether they used mo­bile pay­ments to pay for ev­ery­day goods and ser­vices when the same study was con­ducted last year.

The study, which sur­veyed more than 36,000 on­line con­sumers in 19 Euro­pean coun­tries, re­veals how con­sumer adop­tion of dig­i­tal pay­ments has shifted dra­mat­i­cally in the last 12 months. One year ago, 38% of the peo­ple sur­veyed said they had never used a mo­bile de­vice to make pay­ments and had no plans to do so. To­day, that num­ber has dropped to 12%.

When look­ing at the top ten coun­tries where mo­bile pay­ments are most preva­lent, they fall into two cat­e­gories: de­vel­op­ing mar­kets such as Turkey and Ro­ma­nia, which have been leapfrog­ging tra­di­tional pay­ment meth­ods to adopt new tech­nolo­gies faster; and de­vel­oped mar­kets – par­tic­u­larly the Nordics – which are evolv­ing to new tech­nolo­gies at dif­fer­ing paces.

In­ter­est­ingly, Mo­bile Pay­ments users also say that they are as com­fort­able mak­ing more ex­pen­sive pur­chases on mo­bile de­vices as they are with ev­ery­day pay­ments.

The re­search also shows that mo­bile bank­ing ac­tiv­ity is in­creas­ing across all age groups. For the first time, more than half of Euro­pean re­spon­dents in all age brack­ets are us­ing mo­bile bank­ing. Whilst mil­len­ni­als re­main the most pro­lific cat­e­gory, other age groups are rapidly catch­ing up. With a growth rate of 33%, the high­est growth rate is the 55-64 year olds, while mil­len­ni­als 18-34 have a growth rate of 24%.

Across Europe, the uptick in the num­ber of re­spon­dents us­ing mo­bile bank­ing is also help­ing more peo­ple to keep track of their spend­ing and fi­nan­cial re­spon­si­bil­i­ties – two-fifths (41%) say they reg­u­larly check their bal­ance on­line or via a bank­ing app.

This in­crease in en­gage­ment with dig­i­tal pay­ments co­in­cides with greater adop­tion of con­tact­less tech­nol­ogy. The re­search in­di­cates that, across all age groups, con­tact­less pay­ments are now the norm

Europe-wide, con­tact­less users are also con­sis­tently more open to em­brac­ing newer pay­ment meth­ods than those who don’t use con­tact­less cards. The study high­lights the cor­re­la­tion be­tween con­tact­less us­age and new pay­ment meth­ods, re­veal­ing that con­tact­less card users are more in­ter­ested in us­ing a mo­bile de­vice as a pay­ment method in a shop (52% con­tact­less card user vs 32% non-con­tact­less card user), shop­ping via a re­tailer app (49% vs 31%) or us­ing a mo­bile de­vice to pay for a meal (50% vs 30%).

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