New research from VocaLink into UK consumer appetite for alternative ways to pay on mobile devices reveals that 81% of those interested in new digital payment methods say they are more likely to adopt such services if they are provided by their bank.
The independent research undertaken by Accord on behalf of VocaLink, includes both qualitative and quantitative analysis across 5,000 UK consumers, merchants and businesses.
The research shines a light on Britons current smartphone and tablet payment habits.
- 33% of smartphone owners in the UK have used them to shop online
- 42% of smartphone owners have used them for online banking
- 43% of tablet owners in the UK have used them to shop online
- 33% of tablet owners have used them for online banking
Paul Stoddart, managing director, strategy and business development, VocaLink, comments: These figures demonstrate the opportunity to revolutionise the UK payments industry using portable devices to support the growing population of people who already transact digitally. Growth in use of these devices is exponentially faster than it was for services using fixed internet connections.
Mobile payments have long been seen as the next revolution in payments. Yet despite the popularity of smartphones and tablets and a number of companies entering the space, no one payment method has as yet succeeded in achieving ubiquitous adoption.
Convenience and ease of use are important factors in encouraging consumers to adopt these new ways to pay. However security remains as important for new digital methods as well as existing payments methods.
For those interested in new payment services, 81% indicated they would be more likely to use them if they were provided by their bank and of those, around half indicated they would be encouraged to transact more using their mobile device, continues Stoddart.
This indicates that banks are trusted to provide safe and secure transactions, regardless of channel and the delivery of alternative payments is a clear opportunity for banks to maintain and build greater customer engagement. Traditional institutions have a key role to play and should be at the forefront of payments innovation by delivering services based on consumer demand.