Mobile payments are controversial among both business owners and consumers, and the innovation has proved hard for many companies to implement. Many firms still rely heavily on the traditional forms of payment, as opposed to technology that makes mobile payments possible. While consumers have their own concerns about completing these transactions, it also appears entrepreneurs have hesitations when it comes to offering shoppers the ability to pay with their smartphones.
Consumers hesitant to pay with mobile
While there are always early adopters who are eager to try out every new app and gadget, most people are reluctant to make a major shift in the way they complete transactions. According to research from the Federal Reserve, mobile payments are still relatively infrequent, especially among older demographics. Respondents listed a variety of concerns that keep them from using their smartphones to make purchases.
The most commonly cited worry was related to security. Forty-two percent of respondents to the Fed study said they were concerned about the security of paying with a mobile phone. Thirty-seven percent saw no benefit from using mobile payments, and 36 percent thought using traditional forms of payment were simply easier. Other main reasons shoppers gave for skipping mobile payments were a lack of appropriate technology, high data costs and not trusting technology to complete the transactions properly.
Business owners also have concerns
However, it's not just consumers who are hesitant to employ mobile as a primary payment method - small-business owners are also concerned about adopting this new technology. Management teams face challenges when it comes to making this technology available for their customers, according to a survey by ACI Worldwide. Thirty-two percent of business owners said the biggest problem they faced in regard to EMV mobile payments was rolling out hardware updates. Twenty-six percent thought educating business constituents and consumers would be the most significant issue, and another 24 percent were concerned about meeting compliance and liability shift deadlines.
As concerns among both business owners and consumers continue to stall the implementation of mobile payment systems, companies may benefit from focusing more on traditional transactions. Entrepreneurs who invest in the most updated cash and check scanner, rather than mobile payment technology, may be better able to serve customers, as it appears most are still unwilling to pay for a purchase with their smartphones.
June 21, 2013