An ING Group survey has discovered that throughout the UK and Europe consumers are using mobile to pay and make transfers more frequently, and cash may lose out.
The ING international survey on mobile banking involved over 14,000 shoppers from across Europe. The continent as a whole is moving rapidly towards a contactless shopping culture, with estimates showing that in the next 12 months, 51 per cent of the population that use a smartphone will use payment transaction technology.
Although the number of people using payment technology in the UK is steady at 30 per cent, other European cities are growing at a faster rate. In Turkey, 56 per cent of shoppers are using contactless payments, which is similar to Poland where 43 per cent are using their smartphones to buy products.
For those yet to embrace mobile payment apps, a lack of trust is cited as the biggest barrier (42 per cent). These figures suggest there is still work to be done in reassuring consumers that their details are secure.
Despite the introduction of Apple Pay and Google Wallet, two high profile services that allow payments to be made via smartphone, fewer than one in 10 (9 per cent) of respondents have used these or other ‘named groups’ to date. Additionally, users are far more likely to consider using the app associated with their bank for mobile payments (59 per cent) than ‘named groups’ such as Apple or Google (39 per cent).
Several UK lenders are allowing customers to take advantage of mobile payment app Zapp, which allows them to pay in store or online without the need for a payment card. Peer-to-peer mobile apps are also growing, as most UK banks back Paym, and Barclays continues to plug Pingit.
‘‘While physical cash still has its place in society, mobile payment apps are giving consumers greater freedom when it comes to managing their finances. The instant visibility offered by mobile banking also means more consumers feel in control of their finances,’’ said Ian Bright, a senior economist with ING.
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