Consumers Say Mobile Phone As Payment Device "Unnecessary"

Key among MPD's findings is the apparent lack of enthusiasm that Gen X and Y have today for mobile payment technologies. 62% of respondents feel that using mobile phones as payment devices is unnecessary, with 38% indicating that they do not use their phones enough to make it worthwhile.

Other notable highlights include:

• Overall, Generation X and Y are more alike than different, with the exception of the age bands at either end of the age spectrum. Those between ages 16-19 have a greater interest in trying new technologies; while those between ages 40-43 shy away from Internet-based activities such as online shopping and online banking.
• Security is a big concern across all ages with respect to contactless payment technologies. More than 60% of those surveyed would not pay with contactless fobs, citing security concerns. By contrast, only 4% of Gen X and Y have security concerns with existing payment devices.
• Gen X and Y use a variety of payment devices. Credit and debit are used in roughly the same proportions across all ages, except at the outer bounds where cash and credit are used more by those ages 16-19 and 40-43. There are also gender differences. Women tend to be heavier users of debit; men are heavier users of credit.
• Cash is still a predominant payment device for Gen X and Y, but that percentage declines significantly with age.
• Rewards drive the acquisition of payment devices, but not the decision to use a particular payment device at the point of sale. Men in Gen X and Y tend to be more motivated by rewards than women.

The MPD Next Generation Payment and Technology Study is administered quarterly and samples 4,000 randomly selected individuals, living in the United States, between the ages of 16 and 43. Respondents are asked questions about payment and technology preferences and instructed to keep a diary of all transactions for one week. Survey questions span the types of payment instruments owned, length of ownership, online and mobile phone usage, spending and payment behaviors as well as several "what if" questions designed to gauge interest in new payment technologies.

For more information, contact Yanna Sigenlaub at yanna.sigenlaub@marketplatforms.com or visit MPD's payment portal, PayingwithPlastic.org.