Security issues prevent many from using smartphones for purchases.
Unease of use and security concerns are limiting the appeal of increasingly ubiquitous mobile phones for shopping, according to research conducted by Millionaire Corner.
Phones are become increasingly smarter, and investors we surveyed are using them primarily for email, to access news, play games and engage in social networking. But using them to make a purchase or to make a payment, not so much. More than half (just over 52 percent) said they presently would not use their smartphone as a payment device. Just over a quarter (nearly 27 percent) said they would.
Of these investors, those under the age of 40 were the only segment surveyed of whom more were likely to use their smartphone as a payment device than not (just over 43 percent vs. 36.3 percent). This is not surprising as young people are characteristically the first adopters of new technology. Also not a surprise, retirees and those over the age of 60, generally more resistant to new gadgets, are the least likely to use their smartphones for this purpose, our survey found.
More than half (about 52 percent) of respondents cited security concerns as the reason they were reluctant to use their smartphone as a method of payment. Of these, significantly more women (57 percent) than men (46 percent) shared this concern, again not surprising as women have incorporated smartphones into their shopping routine, whether it be looking up store locations or surfing the Internet to find the best deals.
There are a reported 82 million smartphones in the United States. One in every three people 13 and older owns one and that figure is expected to double by 2015, the Associated Press recently reported. Purchases made with mobile phones are growing faster than online sales, but they still represent a small fraction of electronic sales.
It may be simply a matter of getting into the habit. In our 2011 wealth level studies of mobile technology and social media usage, 58 percent of households with a net worth between $100,000 and $1 million (not including primary residence), 58 percent said they use their smartphone to access personal financial account information, while 42 percent use their smartphone to pay their bills.
This is a higher number than in Millionaire and Ultra High Net Worth households, which is again not surprising as Mass Affluent households skew toward a younger, more tech-savvy demographic.