(PRWEB UK) 11 January 2013
Smartphone penetration has reached 60 per cent in the UK and is continuing to rise, however, ICM Research have released a number of reasons as to why mobile wallet will not take off this year.
ICM Research believe the market is not ready for mobile wallet just yet. Backed by the study they carried out in the period leading up to Christmas 2012, ICM revealed that contactless payments are yet to take off in the UK, with only 8 per cent of consumers actually making contactless transactions. This is despite 80 per cent of people being aware of the contactless payment method. Contactless payment terminals are also few and far between, with a lack of retailer support being cited as a main reason for the small uptake.
The responses ICM received from consumers highlighted a common concern with mobile wallet; security. The findings reveal that consumers will be ready to embrace a range of security measures to grow confidence in mobile wallet. 56 per cent cited that they would use mobile wallet if the bank/mobile provider guaranteeing any financial losses, 43 per cent want to enter a pin on every transaction, 37 per cent after a number of transactions. Further suggestions were; being able to shut the mobile down remotely (40 per cent), setting a daily cap on spending (34 per cent), facial recognition (33 per cent) and voice recognition (24 per cent).
Another reason stated by ICM is that there are not enough near field communication (NFC) enabled smartphones on the market, which means consumers can’t make contactless payments even if they wanted to. Consumers are unlikely to break their long term contracts just to get an NFC enabled smartphone in 2013.
A spokesperson from SmartDebit, a leading UK payment processor, commented on the latest mobile wallet findings, “Whether it is contactless payments cards or mobile wallet, payment security sits at the top of consumer’s lists when it comes to adopting new methods. The research clearly shows that to build consumer confidence towards contactless payment, there must be added security features. The great thing about mobile wallet is that it allows people to manage their vouchers and discounts, loyalty cards and public transport passes, however with 30.3 million contactless cards in circulation in the UK and only 8 per cent usage, we are more likely to see a rise payment method before the mobile wallet takes off.”
SmartDebit is the UK’s leading Direct Debit Bureau, specialising in payment processing services since 1998. A Bacs approved Bureau, scoring ‘Excellent’ in all five categories of the Bacs audit, and ISO 27001 compliant. Providing a complete range of services: Outsourcing; SmartDebit-Admin cloud based portal; SmartDebit-Online payer sign up; SmartDebit-API integrated solution and SmartDebit-Contingency.