And finally…Third of UK using mobile apps instead of cash
New research has found that nearly a third of Britons have used a mobile app to make payments.
The global survey carried out by Dutch bank ING International revealed that thousands of shoppers are using their smartphones or tablets to pay for goods and services.
And while 30 per cent of people in Britain say they are using their handheld device to pay for goods and services, some European countries have even higher rates. Some pushing past half the entire population.
In Turkey 56 per cent of mobile users use their phone to make payments and 43 per cent in Poland were doing likewise.
But only a quarter of consumers in France are using the technology and in Germany, the figure stands at 23 per cent, while in the Netherlands, only one in eight (13 per cent) people have made payments via smartphone or tablet.
Nevertheless, researchers projected that more than half (51 per cent) of European adults with access to a mobile device will use it to make a payment over the next 12 months –compared to 33 per cent at the moment.
The ING International Survey on Mobile Banking, which looked at the habits of more than 14,000 shoppers worldwide, also found that 42 per cent of Amercians are already making transactions via their phone.
Major banks are reporting that the habit in the UK is being driven by the increasing popularity of apps like Zapp and Pingit with high street lenders seeing an increasing number of shoppers signing up to the services.
A number of institutions, including Bank of Scotland, HSBC and Barclays, accept the use of Paym, a mobile transaction technology which identifies its customers by their mobile phone number instead of traditional bank details such as account number and sort code.
Ian Bright, a senior economist with ING, said: “The global market for mobile payments is reported to be growing rapidly technology and what we’re seeing is a major shift in consumer attitudes and behaviour to support that growth – though not everyone is convinced about moving to a cashless society just yet.”
For those yet to embrace mobile payment apps,
A lack of trust was cited as the main reason for people not to utilise mobile technology with 42 per cent of abstainers saying it was the biggest barrier. However, nearly half of respondents (48 per cent) claim that mobile technology makes them feel more in control of their finances.
It was also revealed that users are far more likely to consider using a payment app associated with their bank for mobile payments (59 per cent) than “named groups” such as Apple or Google (39 per cent).
Mr Bright added: “While physical cash still has its place in society, mobile payment apps are giving consumers greater freedom when it comes to managing their finances.
“The instant visibility offered by mobile banking also means more consumers feel in control of their finances, claiming to have avoided missing payments and keeping on top of bills.”