25% of UK Consumers Fear Mobile Payment Will Increase Impulsive Spending
Wednesday, 5 August 2015
1 in 4 UK consumers fear mobile payment services over cash and cards, believing that they will result in them making more impulsive purchases, leading to them spending more, according to new research from comparison website uSwitch.
The research surveyed 1,248 respondents, finding that 57% of respondents would like the ability to check their account balances on their smartphones and mobile devices and 38% would like “tap and go” payments to have a transaction value limit. In addition, uSwitch found that 1 in 10 consumers would like limits on when and where they could use mobile payments, with 10% wanting to limit these by the time of day and 12% wanting to limit spend in pubs and clubs.
The survey also looked at how many consumers would be happy to us mobile payment technology, with 6 in 10 respondents said they weren’t comfortable using their smartphones to pay for goods or services at all, however, 26% said they’d feel more comfortable making payments with third party services from well-known tech brands, such as Apple Pay. The reason for this was concern over security, with 45% of those asked citing this as a reason why they’re less comfortable making payments using their mobile devices.
“It’s great to see people being given more options on how to pay; this is a clear case of how technology can make people’s lives easier,” said Nicolas Frankcom, a spokesperson for uSwitch.
“If they can use these tools to help keep track of their money, that’s an added bonus.”
“However, using your mobile to pay could be a double-edged sword. If paying with your phone is so simple that we don’t think about whether or not we can afford it, it could lead to debt problems. New technology should be welcomed, but it’s equally important that consumers use it to help them take control of their finances, not lose it.”