Everyone wants a pieceIn plural, it is commonly used as synonym for units of banknotes and coins. More of the pie, but with the growing canopy in the jungle of paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More apps consumers are reluctant to adopt any of them.
Ovum carried out a survey on 16,000 consumers on the subject and found that 37% of respondents knew what mobile payments were but had no intention of using them. Of these, a third mentioned security concerns as their main motive to shy away from payment apps while 30% of respondents simply consider cashMoney in physical form such as banknotes and coins. More or cards easier to use.
Banks, technology providers, start-ups, coffee shops and even retailers are joining the gold rush of payment apps – in collaboration with others or on their own. For example, Tesco, a British multinational grocery and retailer, has launched its own app via Tesco Bank, Payqwiq, that allows its customers to shop while collecting loyalty points.
But getting consumers to adopt one or the other app is what’s proving difficult for developers as there are simply too many to choose from and it’s only creating confusion. Using the Starbucks app as an example – where customers can skip the line by ordering their morning coffee on their smartphones on their way to the shop – Managing Director of Tesco Bank, David McCreadie, believes that payment technologies will have to think beyond offering a simple payment service if they want to make a difference in consumer’s minds and survive in the large jungle of payment apps.
Security is certainly a legitimate concern as well as convenience, but what consumers should also ask themselves is: why are so many players fighting for their place in the payments world if the benefits – according to developers – are simply gaining consumer loyalty?
To read the Financial Time’s original article, please click here.