March 23, 2012 4:24 am
“Millennials will be key to the success of online and mobile payments, but above all else, the research shows that consumers want their payment tools to be safe and secure,” explains Dan Schulman, president, Enterprise Growth at American Express.
The findings are from recent research commissioned by American Express, including a quantitative survey and focus groups that explored U.S. consumers’ attitudes and behaviors with current and emerging payments, such as payments made by prepaid cards, mobile phones, digital wallets, and near field communication (NFC), commonly referred to as “contactless payments.”
Consumers want trusted institutions – not Internet or social media companies – to develop new payments, as 62 percent of consumers prefer financial institutions take the lead on new payment methods, rather than wireless providers and Internet companies. Additionally:
- 75 percent of consumers are confident that financial services companies will do what is needed to protect the security of their financial information.
- 83 percent of consumers view security as the single most important concern for consumers when considering a new payment technology, with 62 percent saying that fees are the second most important factor.
- Focus groups supported the findings that, while consumers are open to new technology like NFC, security is still top of mind. One focus group participant questioned how NFC signals were guaranteed secure, while another said, “I don’t leave my purse anywhere but I sure left my phone places… the last thing I want is a device that has my whole life on it.”
In addition to being open to using new digital tools, the research showed how the attitudes of millennials differed from older generations around key issues, such as security.
- Millennials (18-24) continue to be at the forefront of technology, with 86 percent owning a laptop and more than 61percent owning a smartphone.
- When buying something online, 58 percent of 18-24 year olds find mobile apps somewhat or very convenient compared with only 26 percent of those between 55-65 who find mobile apps somewhat or very convenient.
- Similarly, 69 percent of 55-65 year olds do not feel secure shopping on a social media site, while the same can be said for 55 percent of 18-24 year olds.
Published with permission from RISMedia.