The widespread popularity of contactless cards is stunting the adoption of mobile payment services like Apple Pay and Android Pay in the UK, according to research.
Just 1pc of British consumers would choose to use mobile payments in everyday scenarios such as buying lunch or shopping for clothes, far below those who would opt for cards or cash.
The study, based on polling of more than 2,000 people from ICM on behalf of marketing group HH Global, counted security concerns among the reasons for slow adoption of the technology.
While contactless spending in the UK more than trebled last year to £25bn, many consumers have failed to see the benefit of using the equivalent technology with a phone. Adoption of mobile payment services has been higher in some other countries where contactless cards are less common.
Figures from Transport for London released in February, showed that mobile payments now make up 8pc of all contactless journeys, a figure that had increased from 3.5pc a year earlier before the Android Pay service launched.
“Just because the technology is there, it doesn’t mean consumers will change their behaviour immediately,” HH Global’s Robert Macmillan said.
“Mobile payments are suffering from security concerns, but equally consumers may feel there is not enough availability, or just that it is not that important when contactless cards do the same thing.”
According to Loup Ventures, a US research firm, just 13pc of the world’s 680m iPhone users have tried Apple Pay. The service exists in 16 countries, although it does not work on phones older than two and a half years.
Source: The Telegraph