Say "hello" to the new way to pay
Oct 20, 2013 Dave King
The electronic payments industry has seen numerous developments over the past few years as various entities fight to find purchasing solutions that are convenient, easy to use and have mass appeal.
In its recent 2013 Consumer Payment Choice Study, which both surveyed consumers and spoke to them in focus groups, TSYS sought to discover how individuals are buying goods today and how this may change in the near future.
The research identified that traditional modes of payment, such as cash and checks, are on their way out. Debit cards remain the top choice among shoppers, with credit cards close behind for everyday purchases. However, mobile devices are gaining more of a following.
According to the research, consumers are using their mobile devices, including smartphones and tablets, for numerous financial tasks, such as checking bank accounts and statements, making transfers, paying bills and receiving alerts. Additionally, while TSYS noted that mobile payments are still in their formative phase, usage of the purchasing channel is increasing by leaps and bounds.
In fact, a survey from BI Intelligence found mobile transactions are experiencing "explosive" growth. The report explained that mobile devices were used to complete 2 percent of all credit debit card purchases in the United States thus far this year, and 4 percent worldwide. Overall, these figures represent 118 percent annual average growth in the U.S. Areas such as Africa and Asia-Pacific are using the purchasing channels even more than Americans.
To see widespread adoption, though, providers will need to address the key pain points highlighted by the research, chief among them being security, the research from TSYS reported. Respondents were also focused on ease of use, control and speed at checkout.