Mobile eCommerce payments are all the rage, aren’t they? Apparently not so much. The real-life statistics aren’t yet matching up to the hype, as it turns out many customers still prefer tried and tested methods of payment.
Take Black Friday, for example. All those sales, all those chances to try out mobile payments, and yet only about 10% of transactions were carried out in this way. The rest were handled in what’s almost the financial equivalent of snail mail these days – the debit or credit card.
So, what’s the problem? Probably a few factors. One is that any change in customer behaviour is not easy to make the new norm. People paying for products are in a rush. It’s not an enjoyable process for them to part with their money, so they’ll tend to go with whatever they’re used to, to avoid thinking about it too much. If the card is just as handy as the phone, why bother to switch methods, even if it turns out to be slightly faster when you get the hang of it.
Another point in question is the potential customer concern about the safety and confidentiality of the transaction. Even if they are reassured that buying online is basically safe, there are likely to question hovering about the likelihood of information being collected and unwanted emails arriving. Moreover, the potential for accounts to be hacked is a highly publicised concern, and for some people, this will be enough to get them dismissing anything innovative in the way of payment.
If you are looking to help speed up that shift, consider what benefits you can offer for customers who pay in this way. There needs to be a reason why mobile payments are worth trying. Some will enjoy being ahead of the game and looking like a trendsetter as they whip out their smartphone and pay that way, but others will need more convincing.
The switch from cash to cards was never smooth and quick. It takes a big change of mindset for customers to trust and act on new methods of transferring their funds. With new technologies, we can sometimes only observe and be patient. Time will tell.