While data suggests that 64% of UK shoppers now store their debit or credit card details with online sites, many have still yet to make the leap to storing payment details within mobile apps reports Skrill. A survey of 2,000 UK adults commissioned by the digital payments specialist suggests that only14% choose to buy goods and services via apps linked to their credit or debit cards stored online.
One of the main hurdles for in-app purchasing is that people remain concerned about security. Nearly one in three people who do not use apps that store their card details worry that their personal details could be stolen. This suggests that there is still some way to go before consumers have the confidence to pay in this way.
However, mobile phone and tablet users are expected to make 195bn mobile transactions annually by 2019, up from 72bn this year, according to
a report from Juniper Research
. For those using in-app purchasing, the biggest advantage is seen to be not having to re-enter card details for every purchase – cited by 26% of respondents, while a further 22% said that the speed and convenience of in-app transactions were the most important benefits.
“Over time, consumers have become comfortable paying for goods online, as Skrill has seen from facilitating online payments for over a decade now,” said Spiros Theodossiou, vice president (VP) product management. “However, they are still on a journey to accepting in-app purchasing as a regular channel for buying goods and services. Our research shows that people who have adopted the technology have really seen the benefits.
“With significant developments including major wearable technology announcements, public transport going contactless and some major players coming into mobile payments, the way we pay is changing. This could trigger wider acceptance of in-app payments, with more consumers taking advantage of the greater ease of use and speed when shopping, gaming and downloading music. For this to occur, businesses will need to demonstrate the ease of use these apps offer in order to reassure users that they offer a safe way to pay and guide them along this new payment trend as it grows in popularity.
“The onus is on businesses to not only support the highest levels of security and cryptology, but to also encourage their customers to follow best practice such as reading app reviews and installing all updates. These often include improved security settings, which will help to realise the huge benefits of in-app payments.”
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