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Most American Consumers and Banks Aren’t Interested in Mobile Payments

by on January 8, 2018
 

In the world of finance, there are many different trends worth keeping an eye on. Mobile banking, for example, is growing quite popular in the US these days. At the same time, we see a clear lack of enthusiasm for mobile payments. It is uncanny how consumers prefer mobile for banking but more traditional payment solutions. Whether or not things will change in this regard, remains to be seen.

The United States is a very intriguing region when it comes to financial innovation. Consumers have shown a clear preference for mobile banking solutions. That in itself is pretty interesting, especially when considering how this is still a relatively new trend. Mobile payments, on the other hand, are far less common. One would automatically assume both trends correlate to one another. That is not the case whatsoever, which raises a lot of questions.

Mobile Payments Aren’t hot in the US

It seems there is a good reason for this discrepancy as well. Security and privacy fears make mobile payments seem far less attractive. Not entirely surprising, as it is by far one of the riskier payment methods on the market today. Mobile devices are inherently insecure. Users of such devices don’t take the necessary security precautions either. It’s good to see consumers are aware of their own wrongdoings on this front.

Additionally, few banks even offer mobile payment services right now. Just one in four US financial institutions do so according to recent statistics. This number is a lot lower than most people would expect at this point. Most institutions plan to shake things up in the coming years, though. It’s evident there isn’t enough consumer demand to warrant such an upgrade right now. Whether or not this will change has yet to be determined.

Last but not least, few merchants want to embrace this new payment solution. The lack of demand plus no real benefit of doing so stall the adoption curve. Industry-wide adoption will take at least another three years. It may even take much longer, depending on how this particular ecosystem evolves between now and then. A very unusual trend, yet it goes to show mobile solutions aren’t as widely requested as people might think.

Header image courtesy of Shutterstock

JP Buntinx is a 30-year old FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he is working to achieve the same level of respect in the FinTech sector.
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