Making payments using a mobile is almost four times as popular among consumers as using credit or debit cards to make online purchases, a new study has revealed.
A survey of US consumers by Javelin Strategy & Research and PaymentOne showed that a majority would spend more money online if they were offered an easier and more secure way to make payments.
According to the results, online merchants could make an extra $109.8 billion in revenue by providing an alternative way of paying at checkout while online.
Phil Blank, managing director at Javelin Strategy & Research, said the results show that consumers are “concerned about the use of credit cards online and related issues of privacy, fraud, security and convenience”.
“If digital merchants simply offered consumers an alternative way to pay, such as mobile carrier-based payments, 79 per cent of decisive consumers indicated they would spend more, driving significant new incremental revenue from subscriptions, transactions and purchases.”
The findings in the report found that there is a strong appetite for mobile banking among consumers for services which go beyond apps, service bills and subscriptions.
However, the study showed that while 95 per cent of participants own mobile phones, only 36 per cent have already used them to make a payment.
The poll’s results were taken from interviews with 2,000 US consumers in September 2011.
By Jim Ottewill