Younger investors are more likely to use their smartphone to pay for their coffee, at the grocery store or for other daily incidentals.
Smartphones are like the human brain: most people only use a small portion of their functionality.
For instance, it is possible to sync your smartphone to your checking accounts or credit card accounts so that you can pay for some everyday transactions.
The habit is not overwhelmingly adopted yet, based on Spectrem’s Millionaire Corner research.
In the Wealth Segmentation Series study Using Social Media and Mobile Technology in Financial Decisions, more than half of all investors from all wealth segments do not use their smartphone to make payments of any kind.
The study looked at investors in three different wealth segments: Mass Affluent (with a net worth between $100,000 and $1 million Not Including Primary Residence), Millionaire (with a net worth between $1 million and $5 million NIPR), and Ultra High Net Worth (with a net worth between $5 million and $25 million NIPR).
Among UHNW investors, 62 percent do not pay for anything using their smartphone. Sixty-one percent of Mass Affluent investors are the same way, and 58 percent of Millionaires are still paying for things the old fashioned way (like with an actual card of some sort; maybe even cash).
However, the younger investors in each segment report more activity with their smartphone than the older investors do.
The most frequent use of the smartphone as payment device is at the coffee shop, where 46 percent of UHNW investors under the age of 45 use their smartphone. Only 8 percent of UHNW investors overall do so.
Twenty-five percent of UHNW investors under the age of 45 pay for their train tickets with a smartphone, and 21 percent pay their parking meter that way (assuming that technology is available). Only 29 percent of UHNW investors under the age of 45 refuse to use their smartphone as a payment device in any scenario.
Transportation hubs seem to be a major function port of smartphones. Thirty-seven percent of Millionaires use their smartphone to display their airplane boarding pass, and 54 percent of Millionaire investors under the age of 36 use the device for that purpose. In fact, half of Millionaire investors under the age of 55 use their smartphone as their boarding pass.
Asked to place the safety of the smartphones as a payment device on a scale from 0 to 100, with 0 being unsafe and 100 being very safe, UHNW investors placed the smartphone at 48.67, almost exactly at the midrange of opinion. By contrast, credit card safety was placed at 74.77 among UHNW investors.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.