Consumers consider mobile payments safer and more secure than credit cards by a four-to-one ratio, according to a report released this week by Javelin Strategy & Research.
The report, conducted by Javelin and mobile payments vendor PaymentOne in September, surveyed over 2,000 U.S. consumers regarding their online payment preferences for digital content and services.
Four out of five consumers polled would spend more online if given an "easier and more secure payment alternative to credit or debit cards." The Javelin survey also found that online merchants could add aggregated yearly revenue of $109.8 billion by offering an alternative "no-credit-card-required" way to pay at checkout.
The top reasons given by those who stated a preference for an alternative to credit cards for online payments including concern that a merchant or website will start sending them junk mail, concern about personal information being sold to other merchants, and fears about credit card information being intercepted.
Ninety-five percent of survey respondents have mobile phones, yet just 36 percent of them have already used their phone to make a payment, the report found. Among consumers who have used their mobile devices to make payments, nearly one in four have purchased digital entertainment, one in three purchased entertainment tickets, and approximately one in four purchased travel and apparel.
Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio