Mobile Payments: The Future Is Now

The Future Is Now

paying by mobile

While the future of payment systems has already arrived in the form of mobile payments, according to, only 3-7% of U.S. consumers use their phones to make purchases consistently. In all likelihood, by the time you read this, you’ll have used cash and debit or credit cards to purchase your morning coffee and your lunch. If mobile payments are secure and easy, why aren’t people using them?

A recent report by the Federal Reserve highlights mobile phone users’ mobile banking and payment experiences through a year-long and detailed statistical survey. Among those findings, it was revealed that while 61% of mobile phones in the U.S. are smartphones, only 17% of consumers have used their phone in the last year to make a purchase. Compare that to the 33% of mobile phone users who have logged into their bank in the last year, up from 28% the year before.

Some of the most interesting statistics in the report concern consumers’ reasoning for not making a mobile purchase. 76% of non-users believed it was easier to pay with cash or card, while 69% cited a perceived lack of security in mobile payments.

Rumors abound that Apple will be revealing a new mobile payment system next month along with the iPhone 6. According to, Apple and American Express have reached an agreement on this new payment system. In the next week Apple is expected to sign Discover and Visa, a few of several partners needed to sign in order for the system to reach a mass audience.

The new payment system is reported to not only allow Apple iPhone and iPad users to make purchases online, but also to purchase items in brick-and-mortar stores. While this technology already exists, we’ve yet to see an all-inclusive payment solution that will work in every store. Once it hits the market, Apple’s payment system could turn out to be the missing key that opens the door to mobile payments for even the non-tech-savvy consumer.

Perhaps this could be the solution customers are waiting for to bring ease-of-access to mobile payments. Once integrated, paying on your smartphone will be easier than ever. But should consumers be concerned with the security of these payments, and the security of their banking information on their smartphone? In our last blog post, we discussed the reasons why online and mobile payments are safer than payments made in store. Chief among them, certain data, such as card and social security numbers, aren’t as valuable on the underground cybercriminal market as physical cards stolen from stores. Because of this, criminals are far more likely to attempt a breach on a purchased physical card.

Mobile payments are no different than checks and debit cards in that, when technology is first introduced, consumers are wary of the functionality and security of the processing. Even in 2014, regardless of their decline, checks are still in use because consumers know they can trust them. With a little time, and a little hands-on experience, expect mobile payments to follow suit.

For more information about the types of payment solutions E-Complish offers, take a look at our Solutions page, where we detail the security measures and level of convenience our products bring to your business and your customers./.