Switching Phones to Get NFC May Be Popular in the Future

switch-phone-nfc-rfid-blogWhen it comes to mobile payment, there seems to be two very obvious groups of people.

One group prefers to simply tap on their phones to make purchases at the point of sale and the opportunity for exclusive discounts and together with the extensive reporting and even record keeping of custom apps. Probably one-fourth to one-third of that group are US consumers. On the basis of a lately ACG investigation, 30% of US mobile users would be willing to upgrade their phone for the sole purpose of gaining NFC payment technology. In fact, about one-fourth (23%) said they’d like to add functionality via switching carriers. Considering the cost and hassle of switching phones or carriers, it’s a significant number.

But what about the other part? Of those who said they have no willing to use mobile payment, 73% said they had security concerns. Depending on the platform, before the phone’s NFC technology works, users need to authenticate their fingerprint. Thus in reality, mobile payment is poised to be even safer than credit card or cash. Compared with swiping a credit card, the security concern is just a lack of knowledge or an inability to accept change.

The other important reason, though, is that users have a “very high” level of satisfaction with the current payment method. 66% of those who are uninterested in mobile payment cited that as a reason why. And the idea of tapping a phone is not that much of an advantage over swiping a credit card for many people.

Besides, as consumers know the sheer power and flexibility of having all their payment method stored on one highly secure platform that they have virtually at all times, they will change their mind. Then these numbers will probably change.

It also comes down to the merchant. ACG managing director Patricia Sahm said, “Traditional, plastic-based payments remain an effective, efficient and convenient way to conduct purchase transactions. The appeal of using new technology is significant, but merchant acceptance must be widespread in order for it to be adopted widely.”