Online Payment Adoption Slows After Years of Growth
Overall, mobile payment adoption, after surging in previous IDC surveys, appears to have reached a point of slower growth.After several years of growth in the use of emerging payment methods like prepaid cards and mobile payments, a new survey saw a small decline in online bill payment as well as both network-branded and store branded gift cards, according to a report from IT research firm IDC. The report, which polled U.S. consumers in regard to emerging payment methods and technologies, also revealed an increase in mobile payments, but it was small compared with recent trends. "After several years of growth, the market for 'alternative' payment methods is now entering a period where adoption gains may come more slowly and where simply providing an alternative isn't enough. Instead, providers need to offer products that add value beyond the payment," James Wester, practice director for IDC’s Worldwide Payment Strategies and the author of the report, said in a statement. Of those who reported using mobile payments, PayPal Mobile is still the most frequently used mobile payment method. PayPal was used by more than half of respondents (58.6 percent) in IDC Financial Insights' 2014 Consumer Payments Survey, ahead of both Amazon Payments and Apple's iTunes, which remained at around 40 percent.
Overall, mobile payment adoption, after surging in previous surveys, appears to have reached a point of slower growth. Approximately one-third (37.2 percent) of respondents reported using a mobile payment method of some kind, but that is a relatively modest gain over the last survey.