Mobile payments, which allow payments to be made through mobile phones and smartphones, are becoming more and more popular. A variety of companies, including convenience store chains and mobile phone carriers, have entered the market and implemented extensive point reward programs, resulting in rapid expansion in the use of mobile payments among consumers.
However, there are a certain number of people who use existing payment methods such as cash and credit cards and do not switch to mobile payments or do not actively use them. What measures should be taken to popularize mobile payments among these groups?
In this article, we will introduce what is needed to further expand the use of mobile payments, and the keys to the spread of mobile payments analyzed by Google.
Mobile payment increasing number of users
Mobile payment refers to electronic payment using mobile terminals such as mobile phones and smartphones.
There are various types of mobile payment methods, such as the “electronic money type” where you pay by holding your smartphone over a card reader, and the “QR code (barcode) type” where you have the store read the QR code displayed on your smartphone. There is.
According to a Google survey, the percentage of users who have experience using payment services using QR codes (hereinafter referred to as QR payments) had reached a high level of 63.3% as of January 2020. Furthermore, over 60% of both men and women of all ages have used the service. The increase in the number of mobile payment users is thought to be due to the effects of aggressive promotions by companies, such as points rewards for using QR payments.
However, in a survey of users’ intention to use QR payments, which asked whether they would like to actively use QR payments in the future, only 23.3% of people answered, “I want to actively use QR payments.” In addition, the intention to use cash was 32%, and the intention to use credit card was 36%, both of which exceeded QR payment.
These survey results show that while mobile payments have become more popular with consumers and the number of users is expanding, it cannot be said that there is a full-scale shift away from cash and credit cards. Google has concluded that in the future, it is necessary to improve usage intentions rather than expanding the number of users.
The key to popularizing mobile payments is promoting understanding of how to use them
In order for mobile payments to become more popular in the future, it is necessary to increase consumers’ intention to use them.
Google’s research revealed that the following two points are important in the process of consumers actively using mobile payments.
1. Attractive point redemption
2. Easy to understand how to use
Various companies are already running large-scale promotions regarding point redemption. Consumers are also interested in point redemption, which has had a certain effect on increasing the number of mobile payment users. However, the fact that consumers place as much importance on understanding how to use points as they do on point redemption has probably not received much attention in past promotions.
In addition to “easy-to-understand initiatives” such as point redemption and increasing the number of stores that accept mobile payments, it is also important to “initiatives from the consumer’s perspective” that promote understanding of how to use mobile payments.
Reliability in security also leads to active use
Security reliability is important to increase the number of people who actively use mobile payments over cash or credit cards. According to Google’s analysis, consumers are looking for “safety and security” in mobile payments, second only to “returning points” and “understanding how to use them.”
In 2019, fraudulent use was discovered in the mobile payment system operated by a major convenience store chain, and charges from credit cards were suspended. After that, measures were taken such as strengthening the monitoring system and suspending logins using external IDs, but these were abolished just three months after the service started.
When it comes to mobile payment security, it goes without saying that we must take technical measures, but we also need to eliminate the concerns and distrust that consumers have about security. If users have confidence in security and recognize that it is safe and secure to use mobile payments, we believe that active use of mobile payments will increase.
summary
◆Mobile payment refers to electronic payment using mobile terminals such as mobile phones and smartphones.
◆The number of mobile payment users is increasing due to the effects of aggressive promotions by various companies. On the other hand, it cannot be said that there has been a full-scale transition away from cash and credit cards.
◆What consumers value when it comes to mobile payments are “point redemption” and “understanding how to use them.” Google believes that “understanding how to use it” is the key to the future spread of mobile payments.
◆Consumers also demand security and security from mobile payments. In addition to technical security measures, we must also dispel the sense of distrust and anxiety that consumers feel.