21st May 2015
A massive 21m British consumers say they will switch banks to access mobile payments according to new research.
The analysis from digital payment service Zapp found that 44% of consumers plan to switch accounts if their current bank was unable to offer mobile payments and had no plans to do so. Of these, a third, at 33%, say they would do so within a year.
The research found that enthusiasm for mobile payments has skyrocketed over the last 15 months where 28% of consumers have already used their phone to make a payment, up 64% from September 2013. Some 59%, up from 48%, say they would use their phones to pay if a simple system existed that did not require extra set up.
Demand is particularly high among the 35-44 year old age demographic, where 46% already make payments on their phone and 71% say they would if a simple system existed that did not require extra set up.
Consumers say their mobile will become their preferred method of payment before the end of the decade for all kinds of purchases. Almost half plan to use their mobile to pay for electronic products and 20% even say they would buy a house using a mobile payment.
Within just five years, 47% of consumers say they will actively choose to shop online or in-store with a retailer because it accepts mobile payments, with almost a quarter of these saying they would do so within a year. Amongst the high earning 35-44 year old age group, which includes most people at peak earning potential, the number saying they would choose a retailer because it accepts mobile payments was even higher at 60%.
The research also revealed that 62% of consumers have their mobile within ‘arms reach’ for at least 18 hours of every day, compared to just 55% of consumers when it comes to cash.
Commenting on the research findings, Peter Keenan, CEO of Zapp said, “The success of early forms of mobile payment and the buzz around forthcoming launches of mass market initiatives has whetted consumers’ appetites. Anticipation levels are running high and our research suggests banks and retailers stand to gain significant competitive advantage from offering and accepting mobile payments early. I’m confident 2015 will prove a tipping point, as simple, secure mobile payments like Zapp become a reality for millions of British consumers.”