Smartphone payments to exceed card payments by 2020

More payments will be made using smartphones in the UK than those made by cards by 2020 according to 33% of Brits

More payments in the UK will be made using smartphones than on credit or debit cards by 2020, according to 33% of Brits.

Only security fears are holding smartphones back from being the main payment method.

According to the Banking Moving Forward study by Experian, 67% of the 2,000 UK adults questioned thought cash would decrease in popularity and 41% predicted a decline in the use of credit and debit cards.

The research found that the main reason smartphone payments are not already the preferred method of payment is a fear of fraud. Almost half (46%) fear their identity may be stolen online and 60% have no malware protection on their devices.

“Organisations that make it easier, while secure, for their customers to transact with them will have the most rewarding relationships,” said the research report.

Apple uses biometric security for its mobile payment service. Users of ApplePay hold their thumb over a fingerprint scanner when they make payments.

Following the initial success of ApplePay, which allows users to make payments via their iPhone, Apple CEO Tim Cook said 2015 will be the year of mobile payments.

In the US, where ApplePay has been in use since October 2014, the technology had a flying start. The Apple Pay mobile wallet was responsible for 1% of digital payments in the US in November 2014, according to the ITG Mobile Payments report.

Derek Garriock, head of business solutions at Experian UK, said people will decide how to pay based on the ability to pay for something securely and conveniently. 

“Security is a key concern for many individuals, who may be willing to adopt new ways of paying but have not yet done so, even among the younger generation. This is understandable considering that one in six adults has fallen victim to a cyber attack via their mobile device.” 

Read more on IT for financial services

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close