Simon-Kucher & Partners, a marketing consulting firm, has released “How Behavioral Science Can Unleash Digital Payments Adoption.”
According to a press release, the report examines behavioral and psychological biases driving payment decisions among U.S. consumers, and explores behavior-based approaches to motivating and supporting mobile payment habits.
The U.S. has one of the world’s highest smartphone penetration rates in the world. Yet, consumers are not embracing mobile payments on a significant scale, despite its benefits in terms of higher security, speed and convenience.
Highlights from the report include:
- The majority of U.S. consumers (89 percent) still prefer paying with cash, credit card or debit card. Only 8 percent of respondents prefer mobile payment.
- Nearly 40 percent of the time, reasons cited for not using mobile payments included fraud and identity theft. Only 13 percent of mobile payment nonusers thought mobile wallets were secure.
- Nearly 70 percent of the time, reasons cited for not using mobile payments related to lack of confidence in using the technology, including:
- Not tech savvy (23 percent).
- Risk of losing phone (18 percent).
- Fear of forgetting passwords (11 percent).
- Fear of making mistakes (9 percent).
- Frustration setting up payment features (9 percent).
- Among mobile payment users, 75 percent prefer to use a mobile payment app offered by their primary bank rather than one offered by a software company or other bank.
- The report draws from insights based on a survey of U.S. adults about their payment attitudes, behaviors and preferences.