Majority of Americans, Western Europeans do not find mobile payments secure, private or convenient enough to merit rapid adoption, according to a survey by consulting firm Bain & Company.
The study titled, The Consumer View of Mobile Payments, surveyed 25,000 consumers in five countries, including the US, the UK, France, Germany, and Spain.
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Around 25% of consumers were found to opt for mobile device for in-store payments.
Spending by mobile payment users is more than two-to-one in the US and UK and between 30 to 60% more in France, Germany and Spain, the study revealed.
Concerns over potential data security and privacy breaches have put many consumers unswayed by the benefits of mobile payments; however, 40% of them said that they do not intend to switch their payment behaviour.
The study suggested that if these concerns are addressed mobile payments would see rapid adoption over the next three years.
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By GlobalDataConsumers are using new forms of financial technology at increasingly faster rates and 16 to 27% of consumers surveyed by Bain said that they are willing to switch to mobile payments.
Bain & Company EMEA Technology practice head and lead author of the report Stephen Bertrand said the case for mobile payments has been a long time in the making, but still remains unconvincing for many consumers.
"But our study of 25,000 consumers shows that the size of the prize is substantial for those banks, retailers and other digital wallet providers able to create customized value propositions for the growing number of people signaling their willingness to shop on their mobile devices."
According to the study, the key lies in guiding consumers to switch over from debit and credit cards by convincing them the benefits of adopting mobile payments, such as faster checkouts, discounts and/or promotions.
