Mobile Payments Poised to Overtake Cards in UK

Mobile payments are proving increasingly popular with UK consumers, according to a study by Experian.

The information services group’s
‘Banking Moving Forward’
study found that growing numbers of British consumers are using their mobile devices to make transactions, and more believe that they will ultimately displace traditional debit and credit cards will disappear entirely.

One in three UK consumers believes that credit and debit card payments will no longer be the preferred method of payment in 2020, as paying with a smartphone becomes the method of choice. By 2020, 67% of survey respondents think that cash will have decreased in popularity, while 41% think that the use of credit and debit cards will decline from current levels

Continuing the current trend for using biometric data to provide extra security around payments, 14% of survey respondents believe that biometrics, such as retina or fingerprint scans, could also become commonplace by 2020, with 44% said they would be prepared to make payments via biometric scanning.

At the same time, the study also found that fears over cybercrime, particularly fraud, are holding many consumers back from using their devices for making payments.

Almost half of those surveyed (46%) are concerned that their identity might be stolen online, while 60% of smartphone users said they had no malware protection on their devices, leaving them vulnerable to hacking by cyber fraudsters.

However companies and websites that made it easy and safe to do business with will reap the benefits, as customers increasingly trust a certain selection of sites to shop online.

Asked about how other forms of payment could fare, 80% said that secure online payment platforms, such as, for example, PayPal, that let people shop using their debit card, credit card or bank account without sharing their financial details will become more popular by 2020.

“People will certainly be faced with more choice in years to come with the payment methods and providers they choose,” said Derek Garriock, head of business solutions, Experian UK and Ireland. “Their decision will ultimately be based on the ability to pay for something, securely, anywhere and at any time at their own ease and convenience.

“Security is a key concern for many individuals, who may be willing to adopt new ways of paying but have not yet done so, even amongst the younger generation. This is understandable considering that one in six adults has fallen victim to a cyber-attack via their mobile device.”

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