Friday, November 1, 2013

Shoppers Rack Up Spending on Mobile Devices

Overall usage of mobile for payment is still low

Cash and debit cards may be the most common methods of payment used regularly by consumers in the UK, but shoppers tapping their mobile phones to pay for goods and services, whether online or at the point of sale, appear to be spending significantly.
May 2013 research from TNS UK found that overall, a fairly small 12% of the population uses mobile banking each month—far fewer than the 44% who bank online. But the average mobile banking transaction was worth £104 ($165.08), the third-highest average transaction value for any payment method studied and exactly twice the average per-transaction spending on debit cards.
Similarly, contactless payments and smartphone apps saw relatively low usage throughout the population, but spending on both methods came in at a solid £24 ($38.10) per transaction—higher than the average £17 ($26.98) people normally pulled out cash for.
These findings suggest that while mobile forms of payment still have a ways to go to catch on throughout the UK population, those who are making mobile transactions of various kinds find them a convenient middle ground between reaching for cash and a credit or debit card—and aren’t afraid to make more than just micropurchases on the new channel.

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