WASHINGTON (10/30/13)--More than half of smartphone users surveyed have used their phone to make some type of mobile payment, according to a survey released today by the Credit Union National Association.
The survey defines "mobile payment" as "any payment done using a mobile phone."
CUNA's survey also found that regardless of whether or not smartphone owners make mobile payments, security remains their foremost concern, with 77.7% listing security as their most serious concern about mobile payments.
Other concerns were much less significant, with no other category garnering more than 10%, CUNA said. Those included concerns about the battery life of the phone (6.9%), confusion in using the device (6.4%), not having enough rewards/bonus features (5.1%) and the inability to track a budget (4%).
"The fact that the overwhelming majority of smartphone users listed security as a top concern is a reminder to financial institutions and others that offer mobile payments that users won't sacrifice convenience for security," said CUNA Executive Vice President of Strategic Communications and Engagement Paul Gentile.
"While there have been many advances made with mobile security in recent years, respondents' concerns over security indicate financial institutions and companies in the mobile space must continue to stress their focus on security with their customers," Gentile said.
Among respondents who use mobile payments, 91.6% indicated that ease of use is the greatest benefit. The most common single transaction dollar amount for a mobile payment was over $50 (34%). That was followed by:$25.01 to $50 (9.2%),$10.01 to $25 (7.6%), $5.01-$10 (3.2%) and $0.01 to $5 (1.7%). Of those surveyed, 44.3% indicated that they don't use mobile payments.
When it comes to rewards, traditional payment methods are still preferred over mobile payments. Mobile payments were viewed the least favorably with regard to rewards, bonus features, and points, with 6.1% preferring mobile payments. About 41.8% preferred credit cards, while 25.9% preferred debit cards, and 26.2% were unsure.
When broken down by age groups, the greatest use of mobile payments came from respondents ages 30-44 (59.6%), followed by those ages 18-29 (57.9%), 45-60 (47.8%), and 61 or older (24.1%). The survey also suggested that more women (54.5%) than men (47.6%) made mobile payments.
CUNA's Mobile Payments Survey polled 1,046 people via the Internet from a population of mobile phone users. The respondents were 51.3% female and 48.7% male. Roughly 18.2% of respondents reported household income of less than $25,000, while 13.9% reported less than $50,000 annual income; 32% reported less than $100,000; 18.1% reported less than $150,000 and 17.8% reported more than $150,000. The U.S. Census Bureau regions reported were representative as well, with no region making up more than 16.5% of responses.
The survey is the third edition of CUNA's quarterly consumer survey. Previous topics were on student loans and women in finance.