Online, Mobile Payments See Turmoil and Opportunity

Online, Mobile Payments See Turmoil and OpportunityOn Monday, IDC Financial Insights published a new report, “Business Strategy: Results from the 2014 Consumer Payments Survey.”

To glean their latest findings, IDC polled U.S. consumers in regard to emerging payment methods and technologies.

According to the new report, after several years of growth in the use of emerging payment methods like prepaid cards and mobile payments, the new survey saw a small decline in online bill payment as well as both network-branded and store branded gift cards. Mobile payments saw an increase, but it was small compared with recent trends.

Among the survey highlights shared with MMW:

  • Online bill payment continues to see strong overall adoption, though usage has decreased slightly for a second year in a row. Nearly three quarters of consumers (70.0%) reported using electronic bill payment, either directly through a biller’s site or through a consolidator like an online banking site.
  • Mobile payment adoption, after surging in previous surveys, seems to have reached a point of slower growth. Approximately one-third (37.2%) of respondents reported using a mobile payment method of some kind, but that is a relatively modest gain over the last survey.
  • Of those who reported using mobile payments, PayPal Mobile is still the most frequently used mobile payment method. PayPal was used by more than half of respondents (58.6%) in IDC Financial Insights’ 2014 Consumer Payments Survey, ahead of both Amazon Payments and Apple’s iTunes, which remained at around 40%.

To learn more, check out the report here.