21 million British consumers say they will switch banks to access mobile payments, as anticipation for new ways to pay builds, according to new research from Zapp.
44% of consumers plan to switch accounts if their current bank was unable to offer mobile
Consumers will switch banks to access mobile payments
payments and had no plans to do so. Of these, a third (33%) say they would do so within a year.
The research found that enthusiasm for mobile payments has skyrocketed over the last 15 months. 28% of consumers have already used their phone to make a payment (up 64% from September 20132) and 59% say they would use their phones to pay if a simple system existed that didn’t require extra set up (an increase of 48%2).
Demand is particularly high among the 35-44 year old age demographic, where 46% already make payments on their phone and 71% say they would if a simple system existed that didn’t require extra set up.
Consumers say their mobile will become their preferred method of payment before the end of the decade3 for all kinds of purchases, including: sandwiches (51%); car fuel (52%); and travel tickets (57%). Almost half plan to use their mobile to pay for electronic products and one in five (20%) even say they would buy a house using a mobile payment.
Within just five years, 47% of consumers say they will actively choose to shop online or in-store with a retailer because it accepts mobile payments, with almost a quarter (24%) of these saying they would do so within a year. Amongst the high earning 35-44 year old age group, which includes most people at peak earning potential, the number saying they would choose a retailer because it accepts mobile payments was even higher at 60%.
The research also revealed that 62% of consumers have their mobile within ‘arms reach’ for at least 18 hours of every day, compared to just 55% of consumers when it comes to cash.
Commenting on the research findings, Peter Keenan, CEO of Zapp said, “The success of early forms of mobile payment and the buzz around forthcoming launches of mass market initiatives has clearly whetted consumers’ appetites. This research shows that anticipation levels are running high and it suggests banks and retailers stand to gain significant competitive advantage from offering and accepting mobile payments early. I’m confident 2015 will prove a tipping point, as simple, secure mobile payments like Zapp become a reality for millions of British consumers.”
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