British 'uncomfortable' about making mobile payments

Mobile payments: smartphone users the most enthusiastic about the idea
Mobile payments: smartphone users the most enthusiastic about the idea

Half of British consumers are uncomfortable about making cashless payments using a mobile phone, according to new research.

In a survey of 2,500 members of Springboard UK, the market research experts, on behalf of Vision Critical, half of respondents (51%) reported being fairly or very uncomfortable at the prospect of mobile payments.

The survey's findings will come as a blow to companies such as O2 and Orange, which are launching mobile payment systems later this year.

Women were particularly sceptical, with just 21% saying they would be "comfortable" making mobile payments. In men, this increased to 33%, but jumped to 41% in men aged 18 to 34.

Mike Stevens, head of research at Vision Critical in London said: "A lot of people are clearly uncomfortable. There is a perceived security risk that will need to be addressed as services are rolled out. Banks could play a strong role here – they are generally more trusted by their customers than other players in the mobile payments game."

Respondents also had views about how money would be debited from their handsets.

A total of 41% favoured funds being debited directly from a bank account, while 20% wanted a dedicated "mobile wallet".

The research suggests that mobile payments would drive down the use of cash more than the use of credit or debit cards.

Some 33% said they would spend a lot or a little less with cash and debit cards, while 22% said they would spend less on their cards.

The most encouraging news for those planning mobile payments is that users of smartphones are the most enthusiastic about making mobile payments.

IPhone users lead the way, with 48% "very" or "fairly" comfortable with making mobile payments, with figures for Blackberry and HTC users a little lower, but still much higher then those who do not use smartphones.

O2 and Orange will launch mobile payments systems later this year, with Apple believed to be considering using iTunes for mobile payments.

YouGov research published last month also suggests consumer reluctance, with 37% of those surveyed found to be wary of making mobile payments, but incentives such as loyalty driving use.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer