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Mobile Moves: M-Wallets Not Expected to Catch On in the UK in 2013

  • By Andrew Deichler
  • Published: 2013-01-07

With mobile developments reshaping the payments landscape, AFP brings together the top mobile payments trend information to help corporates track this evolving industry. This feature appears monthly in AFP’s Payments newsletter. Follow @Mobile_Moves on Twitter for all the latest updates.

2013 Outlook: Mobile Wallets Not Expected to Catch On in the UK

Mobile wallets are unlikely to become the preferred method of payment in the UK this year, according to a new survey.

ICM Research polled 2,015 Britons and found several reasons why the mobile wallet concept will probably not take off this year in the UK. Contactless payment—which is seen by many as the gateway to the mobile wallet—has yet to really catch on, despite smartphone penetration being at 60 percent and rising. Consumer awareness is at about 80 percent, and m-commerce has proven popular. But only about 8 percent of people are actually using contactless technology to make transactions. The report notes that there is also little retail support (few terminals and minimal in-store promotion).

Additionally, even though many UK consumers use smartphones, few have NFC and therefore are unable to make contactless transactions. A major barrier here is the fact that many smartphone users are tied to lengthy contracts that they are not likely to break this year just to get an NFC-enable device.

However, the desire for the mobile wallet is strong, indicating that a breakthrough could come further down the line. Thirty-four percent of all respondents and said they are interested in using their mobile devices for making payments. The figure jumps to percent of smartphone owners, with younger people the most likely to do so (55 percent of 18-24 year olds and 49 percent of 25-34- years olds). Fifty-one percent of smartphone users said they would use mobile wallets if they received incentives to do so.

More than half of smartphone users also said they would use a mobile wallet if their security concerns were eased. Consumers are willing to accept certain security measures, such as a bank/mobile provider guaranteeing any financial losses (56 percent), entering a PIN for every transaction (43 percent) or after several transactions (37 percent), the ability to shut down remotely (40 percent), setting a daily cap on spending (34 percent), and facial and voice recognition (33 percent and 24 percent, respectively).

ICM recommends that the market do more to combine incentives and security measures to build consumer confidence, which will drive adoption of mobile wallets.
 
Canada Gets its First NFC Magazine Ad

Canadian telecom giant Rogers Communications, bank CIBC and BlackBerry developer RIM have teamed up to run Canada’s first NFC-enabled magazine ad.

The ad is running in Connected Rogers Magazine and features an NFC tag developed by Crosscliq. When a reader taps the tag with their phone, they receive a special gift offer. Users can receive free premium BlackBerry apps, information on the new BlackBerry 10 product line, and the CIBC Sure Tap contactless payments app.  

The initiative could help to breathe new life into the ailing BlackBerry. In November, a report by Keystone Systems revealed that the top 15 U.S. retail banks are no longer developing BlackBerry apps.

iRemotePay Allows Card, ACH Payments

With a new mobile point-of-sale service, Payment Data Systems aims to bring mobile point-of-sale services to companies that have a need for remote payment processing.

Developed for the iPhone, iPad and iPod Touch, the iRemotePay app allows for the processing of all major U.S. credit cards, ACH payments and even cash when combined with a compatible card reader.

IRemotePay is geared towards to merchants and other businesses with large customer bases. All accounts are provided with access to an application that stores transaction history and features reporting of all transaction activity. IRemotePay’s credit card and ACH batch reports are said to make bank reconciliation easier for organizations.

Square Now Selling Card Readers at Starbucks

Capitalizing further on its relationship with Starbucks, the payment service is now selling its mobile card readers at the coffee giant’s 7,000 U.S. locations.

Starbucks customers are now able to buy Square dongles for $9.99 and can get their money back via rebate. The readers allow smartphone and tablet users to accept debit and credit card payments.

Copyright © 2014 Association for Financial Professionals, Inc.
All rights reserved.

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