Barriers Exist to Consumer Use of Mobile Phones for Transactions

Phoenix Payment has announced the results of its tenth annual Consumer Payments Preferences and Usage Study examining consumer preferences and usage of payment methods at point-of-sale and for recurring bills. According to Phoenix Payment, this year’s study "delved more deeply than those of prior years into the shift to debit card usage and consumers’ attitudes toward both PIN and signature debit payments."

“Debit card usage is growing, and consumers clearly prefer PIN to signature debit,” stated Ken Kerr, Vice President of Phoenix Payments. “Our analysis shows clients the reasons. We also break down changes in payment behavior by customer segments. Everyone has a cell phone, but the phone as a payments channel is being over-hyped. Consumers have serious security concerns, and few see a compelling reason to switch from cards to phones for payments. The analysis reveals consumers’ appetite for phone and other payment methods, and it identifies barriers to cell phone adoption that must be addressed.”