PLANO, TEXAS – [October 25, 2016] – Consumers are keener to adopt mobile wallets than many businesses realize, according to a global survey of 2,000 consumers and 300 executives conducted in August by NTT DATA, Inc., a leading business and IT services provider. The survey found a third of consumers expect mobile money will dominate payments within a decade. And whereas 40 percent of executives across multiple industries think people will pay for transactions in 10 years much as they do today, only 27 percent of consumers expect the payment landscape to remain unchanged.
While consumers’ enthusiasm for a cashless, cardless future is encouraging, “user adoption of mobile payments has not come close to the numbers many of us in the industry predicted five, three, even two years ago,” says Sam Maule, director, Digital FSI at NTT DATA Consulting, Inc. In the U.S., he adds, mobile will not overtake cash and plastic until standards are adopted to improve security and convenience for consumers. “The results of our study clearly validate the expectations and challenges facing mobile payments adoption,” he says.
The study, “Future of Money,” carried out in partnership with Ingenico ePayments, Oxford Economics, and Charney Research, examines trends in cash usage and electronic payments worldwide. The results suggest companies may not be moving quickly enough to offer the high-tech payment options consumers want.
Other important findings from the study include:
Companies mistakenly assume customers are wedded to cash
- More than half (51 percent) of consumers think cash use will decline in the next three years
- Consumers are least cash-dependent in the U.S. and Europe. Only 20 percent of Americans’ monthly spend is in cash
- Nearly a third (31 percent) of executives think mobile money does not apply to their business
- Among businesses that don’t accept mobile payments, 41 percent say it is because customers prefer paying by cash or check. But 70 percent of consumers would like to be able to make travel, entertainment, technology, retail, and healthcare purchases with their mobile phone or tablet
- Only 35 percent of executives think cash use will decline in the next three years
- Consumers place nearly identical value on acceptance, security and convenience as the drivers of mobile payment adoption
All business executives recognize advantages of mobile money
- 77 percent of US business leaders see the cost advantages of mobile money
- 83 percent say mobile money improves the customer experience
- More than half of all executives surveyed say mobile money boosts loyalty
Younger executives have a clearer vision of the mobile future
- Nearly 80 percent of millennial business leaders (18-34) believe accepting mobile money boosts or would boost sales, compared with 51 percent of business leaders over 50 years old
- 71 percent of millenial business leaders say failure to do so puts them at a competitive disadvantage
The complete report, “The Future of Money,” will be published in January 2017. To request a copy, please email FutureofMoney@oxfordeconomics.com.
Follow @NTTDConsulting on Twitter for updates related to this new research, using the hashtag #FutureofMoney.
About Oxford Economics
Oxford Economics is the world leader in global forecasting and quantitative analysis for business and government, and the most trusted resource for decision-makers seeking independent thinking and evidence-based research. Headquartered in Oxford, England, with offices in London, New York, Singapore, and elsewhere around the globe, the firm employs more than 150 professional economists, industry experts and business editors—one of the largest teams of macroeconomists and thought leadership specialists. Please visit www.oxfordeconomics.com to sample our research and analysis.
About Charney Research
Charney Research is a strategic survey research firm specializing in work in global markets and developing countries. It helps decision-makers in the corporate, security, and international development sectors assess markets, develop strategies, and evaluate results. Charney has worked in more than 45 countries over 20 years, for clients ranging from Alcoa, Samsung, and ABC News to the International Peace Institute, the State Department, the US Agency for International Development, and the World Bank. We have a history of conducting complex, multi-country studies. Visit www.charneyresearch.com for information about our work as well as resources on public opinion and research methods for survey work in developing countries.
About Ingenico ePayments
Ingenico ePayments is the global leader in seamless payment, providing smart, trusted and secure solutions to empower commerce across all channels, in-store, online and mobile. With the world’s largest payment acceptance network, we deliver secure payment solutions with a local, national and international scope. We are the trusted world-class partner for financial institutions and retailers, from small merchants to several of the world’s best known global brands. Our solutions enable merchants to simplify payment and deliver their brand promise. Learn more at: www.ingenico.co.uk and www.ingenico.com.
About NTT DATA
NTT DATA is a leading business and IT services provider and global innovation partner with 80,000 professionals based in over 40 countries. NTT DATA emphasizes long-term commitment and combines global reach and local intimacy to provide premier professional services, including consulting, application services, business process and IT outsourcing, and cloud-based solutions. We’re part of NTT Group, one of the world’s largest technology services companies, generating more than $100 billion in annual revenues, and partner to 80% of the Fortune Global 100. Visit www.nttdata.com/americas to learn how our consultants, projects, managed services, and outsourcing engagements deliver value for a range of businesses and government agencies.