New research from GfK reveals vast age differences in U.S. attitudes toward mobile payments, with Generations Y and Z—often referred to as Millennials—twice as likely to view them as faster, easier, or more efficient than other types of transactions.
These younger U.S. consumers also show more confidence in the security of mobile payments—although Generations Y and X are actually more concerned than Baby Boomers about the possibility of a personal information breach via mobile payments.
“While some view mobile payments as a solution in search of a need, our findings suggest that Millennials and even younger consumers will embrace mobile payment methods more and more”
The new findings come from an in-depth look at mobile payments included in GfK’s latest FutureBuy study, which tracks the convergence of digital and bricks-and-mortar activities in shopping across 15 product categories. GfK’s Tom Neri will present highlights from the new research at Money 2020 on Monday as part of the panel “Building Solutions for Millennials.”
The research shows that, despite attitudinal differences, the generations are essentially the same in their use of mobile payments, which account for just 2% to 3% of all transactions in the U.S.
When asked if mobile payments are “easier,” “faster,” or “more efficient,” 29% to 46% of Generations Y (ages 25 to 34) and Z (ages 18 to 24) agreed either completely or somewhat—compared to a range of 18% to 30% for Gen X (ages 35 to 49) and Baby Boomers (ages 50 to 68). (See Table 1 below.) And 38% of those in Gen Z said that mobile payments are more secure than other payment methods – compared to just 16% for Gen X and 12% for Boomers.
Overall, more than half (57%) of U.S. respondents agreed completely or somewhat that they are worried about the security of their personal information with mobile payments. In addition 42% said they found mobile payment technology “still clunky”; and 37% saw mobile payments as “more of a gimmick than a major way I pay.”
“While some view mobile payments as a solution in search of a need, our findings suggest that Millennials and even younger consumers will embrace mobile payment methods more and more,” said Tom Neri, executive vice president of GfK’s Financial Services team in North America. “This will accelerate store retail adoption— especially as devices such as wearables offer more convenience and sophisticated payment options. But, to encourage widespread acceptance, financial services companies and device makers will need to come to terms with consumers’ concerns about security and their sense that mobile payments may just be a gimmick.”
For the full study: http://www.gfk.com/us/Solutions/shopper-and-retail-strategy/Pages/GfK-FutureBuy-Mobile-2014.aspx