Survey: 36% of consumers have used a mobile device to pay for merchandise at the register
CHICAGO — More than one-third of those surveyed (36%) have previously used a mobile device to pay for something in a brick-and-mortar retail store, up from 15% in 2012, according to the results of a study commissioned by Retale that examined consumer interest and adoption of in-store mobile payment in advance of the holiday shopping season.
When asked if they would be interested in using a mobile device to pay for a gift or other item in a retail store this holiday season, nearly three-out-of-five respondents (56%) said they would, and an equal number (57%) said that retailers should offer some kind of mobile payment option in-store.
Those familiar with mobile pay are even more enthusiastic, according to the survey. Among those who have used some form of mobile pay in-store, 91% said they would do so again during the holidays while purchasing gifts for friends and family.
“Though the majority of shoppers have yet to use mobile pay, they do see it as an increasingly useful way to pay in-store, particularly during busy shopping periods,” stated Pat Dermody, president of Retale. “For retailers interested in bridging the gap between online and offline, mobile may offer a solution.”
Convenience was cited as the primary benefit of in-store mobile payments by 58% of respondents. Alternatively, 24% called in-store mobile payments inconvenient, indicating the need for convenience parity relative to cash, credit and debit cards.
The top three factors of greatest concern to respondents about mobile pay in-store were: “data breaches and privacy” (28%); “possible theft or loss of my mobile device” (17%); and “difficulty keeping track of spending” (10%). Almost half (46%) of all respondents said that all of these factors currently concern them.
More than a third of respondents (68%) said they would be most comfortable using in-store mobile payment for items $50 and under, whereas 20% indicated comfort with the $50 to $250 range. Only 12% said they would be comfortable using mobile pay for a purchase over $250.
When asked what they were most likely to purchase with on-site mobile payment over the next three months, respondents mentioned lower-priced product categories over more expensive ones. The top five responses were: food (27%); clothing (24%); gas (17%); electronics (13%); and appliances (4%).
“It is still early days for mobile pay,” said Dermody. “As adoption increases and in-store mobile payment becomes more normal, we will see spending amounts rise. Right now, it’s a comfort issue.”
Among survey respondents, millennials were by far the most receptive to mobile pay. Key data points on this group in terms of adoption and usage include:
Fifty-three percent have used mobile pay in-store — 17% higher than average (36%);
Seventy-three percent are interested in using mobile pay for holiday shopping —17% higher than average (56%);
Sixty-seven percent found mobile pay to be convenient — 9% higher than average (58%);
Seventy-four percent want retailers to have a mobile pay option in-store —17% higher than average (57%); and
Millennials were the only group to choose clothing as their top mobile payment purchase category (34%), with food in second place (26%).
As part of the survey, more than 1,000 adult men and women in the United States were polled between Nov. 3 to Nov. 10, 2014.