Mobile Payments, Online Bill Payment Usage Grows: IDC
Americans are fast adopting mobile payment services, but are more likely to buy physical goods than digital downloads.Mobile payments have more than doubled in popularity, reaching more than 33 percent of U.S. residents, according to the results of a report, Business Strategy: Results from the 2012 Consumer Payments Survey by IT research firm IDCs Financial Insights division. More than half of those who made a mobile payment used PayPal Mobile (56 percent), with Amazon Payments and Apple's iTunes service statistically tied at about 40 percent, according to the report. More respondents reported buying physical goods with their phones than online services, digital goods or virtual currency, despite the general popularity of digital downloads, such as applications and music, the report noted. For the second consecutive year, both biller and bank-operated online bill pay sites were used by more than 50 percent of the respondents. Overall the report found nearly three-quarters (73.5 percent) of U.S. consumers now use online bill payment, indicating online bill payment is now the dominant way to pay bills in the United States.
Based on our results, we expect to see continued growth in open-loop prepaid cards and mobile payments next year, and believe that the improvements being offered in electronic bill delivery will break electronic bill presentment and payment (EBPP) out of its doldrums as well, Aaron McPherson, practice director of IDC Financial Insights, said in a prepared statement. The advent of new card-linked offer programs should increase the influence of rewards on the average consumer, however, this will depend on how many banks choose to move ahead aggressively with these programs, and how many merchants choose to support them.