Do you use your smartphone as a payment device? If not, you might have to get used to it.
A second quarter Millionaire Corner survey about mobile technology and social media usage finds that nearly all respondents (92 percent) said they do not use their smartphone for this purpose. Meanwhile, USA Today reports that many retailers are ditching their cash registers for mobile checkout.
Nordstrom, the paper reported, is joining J.C. Penney, Apple and others in making the transition to 21st century technology to check out customers. Penney’s for example, hopes to have salespeople use their iPod touch devices instead of cashiers and cash registers. More than 6,000 Nordstrom salespeople are already using mobile devices to check customers out, USA Today said.
In our study, 44 percent of households with a net worth between $100,000 and $1 million (not including primary residence) reported using a smartphone. Not surprisingly, usage is significantly highest among younger smartphone owners (78 percent).
But among respondents there is scant smartphone usage as a payment device. Only 8 percent use their smartphone for this purpose. Again, the under-45 age group is most likely to use their smartphone at the checkout counter, but not by much; only 13 percent said they are paying for purchases with their smartphone.
This attitude does not seem likely to change. Among those who do not use their smartphone as a payment device, 29 percent are “neutral” on whether they are likely to do so, while 27 percent said it was “unlikely.” Forty percent said they were either “uncomfortable” or “very uncomfortable” from a security standpoint with using their smartphone as a payment device compared to 33 percent who said they are “comfortable” or “very comfortable.”
Just over one-quarter (27 percent) said it was either “likely” or “very likely” that they will start to use their smartphone as a payment device.
Not surprisingly, those who are already using their devices for this purpose express a strong comfort level. Eighty-five percent said they are either “comfortable” or “very comfortable” in regards to security.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.