PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Mobile Payments: Answering the Big Questions

By Neal Michie
January 14, 2016
in Industry Opinions
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

One of the big questions in finance at the moment is “how do we get people to use mobile payments?” The arguments of “mobile’s the future” or “the kids of today will expect everything on mobile” simply miss the point. Worse, they imply that the question will somehow answer itself.

Mobile payment apps are plentiful but how do we get people using them?

Mobile is only the future if it offers something better than today. If mobile payments are to be successful long term, they must fit in with our increasingly “mobile-centric” lives. With so much interest around mobile payments at the moment: Apple Pay, Samsung Pay, Android Pay, HCE… to name a few buzz words, it is time to address the question with real answers.

Ultimately there are two challenges: getting people to try mobile payment and then keeping them using it.

Research suggests that lack of uptake is due to concerns about security, lack of usefulness, etc. Despite these concerns there is a significant proportion of mobile users that claim they want to use mobile payments – as our recent research demonstrated: 78% of Android users would like an Apple Pay-like solution on their phone.

Turning interest into payments

How do we turn that interest into actual payments? Given the high level of interest, it suggests to us that for most consumers the stated concerns are not the real barrier to them using mobile payments but an excuse. We believe that there has been a fundamental problem with the way the services are presented to consumers. This was then coupled with an enrolment process that deters even those consumers that are interested in using the service.

There has to be a clear “win” for consumers for them to take the effort to sign up for a new service; so that sign up must be quick and easier. Every step, every delay in putting the ability to pay into the hands of a consumer increases the chance they will lose interest. Those who want “everything on mobile”, want it now and the next generation will expect it as a “given”.

Those of us who focus on NFC payments have found user adoption particularly difficult. With the best will in the world, SIM based deployments have traditionally struggled to deliver the immediacy demanded by mobile users – in part caused by the need to get a new “NFC enabled” SIM card. But things are changing. HCE Payments has brought about a step change in lowering the sign-up barrier. The user enrolment and card deployment process is quick and easy. There is no reason why it shouldn’t take more than a couple of minutes from a shopper’s interest being piqued to them walking into a shop and buying something using their phone.

Already usage figures for HCE Payments are orders of magnitude higher than their SIM based equivalents as a result.

Keeping people using mobile payments

How do we stop people putting mobile payments in the bin once the novelty wears off?Once the mobile payment momentum is building, how do we keep customers using mobile payments in the long term once the initial novelty wears off?

We need to stop thinking about “virtual cards”. That metaphor limits us. If we just recreate a plastic card on a mobile phone, it cannot possibly be better than a plastic card. At best, it is the same.

By understanding the power of mobile devices, the opportunity exists to create something more than just a plastic card on the phone. The mobile brings about social connection. Its data connections allow tailored personal experiences to be created. The mobile’s sensors allow those personalised experiences to be delivered to the consumer at the relevant time. All this unlocks a truly mobile payment experience.

It is this truly mobile experience which will drive repeat usage. It will be better than cards. It will engage with the consumer. It will add value. It is what is required to compete in a “mobile-centric” world. Anything less and mobile payments will continue to be a novelty.

Have you tried to sign up for mobile payments? Did you keep using them? Let us know via [email protected] or @Helixion_NFC.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Customer RetentionMobile PaymentsSelf Service and Convenience

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    recurring payments, PCI Compliance for small business, Fintech for Underserved Small Businesses

    Tariffs May Create an Opportunity in Small-Business Cards

    May 15, 2025
    Using the Card “Beyond” Payments to find the Holy Grail

    Using the Card “Beyond” Payments to find the Holy Grail

    May 14, 2025
    Payments Modernization

    Playing Offense and Defense: Why Now Is the Time for Payments Modernization

    May 13, 2025
    Authorization Rates

    Boosting Revenue for Merchants by Optimizing Authorization Rates

    May 12, 2025
    Why Payment Orchestration is the key to international merchant growth

    Ensuring Payment Decisions Pay for Themselves

    May 9, 2025
    cross-border

    As Businesses Reevaluate Cross-Border Relationships, Financial Institutions Can Help

    May 8, 2025
    Nacha WEB Debit Account Validation Rule Verification Solution, Quovo ACH Payment

    The Brave New Future of the Disappearing Account

    May 7, 2025
    solana financial

    After an Upgrade, Solana is Primed to Be the Blockchain of Choice for Financial Institutions

    May 6, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result