The payment carrot and stick

prelin —  April 30, 2013 — Leave a comment

Consumers really enjoy using cash or cards. This truth means that mobile wallet providers need to incentivise users with some sort of carrot or punish users with a metaphorical stick when using cash or cards.

Accenture surveyed 4,000 smartphones users in the U.S. and Canada to find out why mobile payments haven’t exactly surged. The conclusion of the report: Mobile payments need carrots to make them work.

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Some snippets from the report:

  • 60 percent of those who use their smartphone to make payments would use it more if they could track receipts.
  • 56 percent said they’d use mobile payments more if it would make managing finances easier.
  • 51 percent wanted reward points stored on the phone.
  • And 50 percent wanted coupons stored automatically and priority customer service.

To date, eBay’s PayPal is the mobile payment leader. Can eBay partner to deliver enough goodies to solidify its position? How about Google? Visa and Mastercard? Mobile payment incentives would also encourage non-users to hop on the smartphone bandwagon. One in five non-believers in mobile payments would use those systems if they could get coupons.

Security, convenience of cash and credit cards and privacy were also big concerns impeding mobile payment growth.

Ultimately we can see it’s less about technology and more about privacy, simplicity and features that customers can use. It’s difficult to see cash and the prepaid card disappearing anytime until mobile providers get their act together.

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