Mobile Payments Could Surpass Cards by 2020, study finds

 Friday, 13 February 2015

 Prepaid News

Mobile Payments Could Surpass Cards by 2020, study finds

The days of credit and debit cards could be numbered, as a new survey of UK consumers finding that they’re increasingly embracing mobile payments, with more people opting for them over their cards than ever before.

The findings, which were part of Experian’s “Banking Moving Forward” study, also found that a significant number of British consumers believed that card payments could disappear altogether over the next few years.

In total, 33% of those asked as part of the study believed that credit and debit card payments would no longer be the payment method of choice for most of us by the year 2020, identifying mobile-based digital payments as the likely successor of cards.

What about cash?

The same study found that while cash and card payments look set to dominate in the short term, a large proportion of British consumers see the adaptation and use of alternative payments, including mobile payments, would increase many fold over the next 5 years.

14% of those asked believed that biometric payment security, such as fingerprint and retina scans, could become common by 2020, replacing the current chip and PIN technology used today, with 44% of people confirming that they would be comfortable making payments using some form of biometric security.

Consumers are still wary

The study also found that many consumers still had fears over security, mostly online fraud, and one was of the main reasons cited by those who were unwilling to adopt alternative payment methods. In fact, concerns were so high that 46% of those surveys confessed to holding fears that their identity might be stolen online.

However, the study revealed an opportunity for businesses who were able to ease these concerns by increasing the safety of making purchases online with them, as over the last few years trust has been seen to be an increasing factor in whether or not consumers decided where to make a purchase.

“People will certainly be faced with more choice in years to come with the payment methods and providers they choose. Their decision will ultimately be based on the ability to pay for something, securely, anywhere and at any time at their own ease and convenience,” said head of business solutions for Experian UK and Ireland, Derek Garriock.

“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 amongst the younger generation. This is understandable considering that one in six adults has fallen victim to a cyber-attack via their mobile device.” he added.