New Research Finds Mobile Payments Reaching Tipping Point in Some Countries

New research by ACI Worldwide and Aite finds that mobile wallet adoption is on the rise globally and consumers in the U.S. and Europe are catching up with those in fast-growing economies in Asia and Latin America where mobile wallets have already become the dominant payment platform.

Key findings:

• The research shows that 17 percent of U.S. consumers now regularly use their smartphone to pay, up from 6 percent in 2014 when the survey was last conducted. In Europe, Spanish consumers are the most active users of mobile wallets, with 25 percent using them regularly, followed by Italy (24%), Sweden (23%) and the U.K. (14%).
• Mobile wallet adoption: India tops the list of countries surveyed, with 56 percent of consumers saying they pay with a smartphone regularly, followed by Thailand (51%) and Indonesia (47%). According to the research, these markets are leap-frogging traditional card infrastructures and usage patterns and are very mobile-oriented, as most consumer’s internet connections are through a mobile device rather than a desktop or laptop.
• Mobile wallet security: Consumer confidence regarding mobile wallet security remains high. In the U.K., 37 percent of respondents said they trust their bank to protect their personal information when paying via smartphone; in France, 40 percent; and in Holland, 28 percent.
• Mobile wallet fraud: The report warns that as more consumers adopt mobile wallets, they may also become a bigger target for criminals—exposed to fraud when using their mobile wallets. Compared to previous years, confidence rates regarding mobile wallet security have dropped in some countries, a sentiment that may be influenced by increasing reports of new mobile wallet fraud and scams.