SIOUX FALLS, S.D.—A new study reveals good and bad news for mobile payments—the value of mobile transactions is markedly increasing, but the same can’t be said for the number of new mobile payments users.
Only 21% of consumers who use the Internet expect to move to try mobile payments, according to a survey by Citi Cards, pointed out the Media Post, which added that a majority (59%) said they were very unlikely to start using a mobile payment app.
The Citi study forecast that mobile payments transaction value will triple this year, attributing the growth to an expanding user base, broader merchant acceptance and the increasing frequency of consumers using their phones to make point-of-sale purchases on more expensive products.
“So there may not be a lot more people, but there will be a lot more money flowing through mobile,” the Post stated.
The report also questioned why more cardholders have not turned to mobile payments with the U.S. migrating to EMV. EMV POS transactions are slower than a mag-stripe swipe, but loading the chip card into a digital wallet and using tap-and-go technology takes the user back to mag-stripe speed.