US shoppers are yet to take up mobile payments – Retale

A recent survey by Retale has revealed that US consumers are yet to adopt the mobile shopping, due to a lack of awareness and understanding.

A recent survey by Retale has revealed that US consumers are yet to adopt the mobile shopping, due to a lack of awareness and understanding.

Retale, a location-based shopping platform, discovered that 71% of apps users didn’t like the idea of being location-tracked in stores through their smartphones, and 56% were not interested in receiving push notifications while shopping.

Patrice Dermody, president of Retale, said: "For retailers looking to maximize traffic and sales, understanding consumer motives and desires is the best way to improve the shopping experience."

The study, conducted on more than 3,000 iOS and Android users about their mobile shopping experiences, showed that 56% didn’t know that near-field communication (NFC) was a contactless payment system for mobile devices.

On the 38% who said being familiar with the technology, only 5% to 6% were using it regularly to pay retailers.

Also, 75% were unaware that iBeacon existed, while only 11% of Android users claimed using Google Wallet.

Yet, Forrester Research expects US mobile payments to reach $90bn in 2017, representing a 48% compound annual growth rate from the $12.8bn spent in 2012.

"Just like any new technology, it often takes time for consumers to adapt and change their buying behaviours," concluded Dermody.

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