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Grow Your Business Technology

Financial Incentives Encourage Mobile Purchasing

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When it comes to upping usage of mobile payments by smartphone users who have already become mobile payers, financial incentives and mobile-based financial management tools would encourage them to use their smartphones to make payments more often, according to a new study.

More than half of 4,000 smartphone users who currently use their smartphones to make payments said they were highly likely to pay by phone more if they could use their phone to track receipts (60 percent), manage their personal finances (56 percent) or show proof of insurance (56 percent) or of a valid driver's license (54 percent). The survey was sponsored by Accenture, a consultancy.

In addition, more than half of those who currently make mobile payments also said they were highly likely to pay by phone more often if they were offered instant coupons from retailers when buying by phone (cited by 60 percent of respondents), reward points stored on their phone for future purchases at the store (51 percent), coupons that could be automatically stored on their phone (50 percent) or preferential treatment, such as priority customer service (50 percent).

These tools and incentives could increase the adoption of mobile payments among those who currently do not make mobile payments. For instance, about one in three non-users said they would be more likely to use mobile payments if they could use their phones as proof of insurance or to track receipts (each cited by 32 percent of respondents). And about one in five non-users said that they would be more likely to use mobile payments if they received preferential treatment at retailers or coupons for future purchases that could be stored on their phones (cited by 21 and 20 percent of respondents, respectively).

“Our survey reveals that current users and non-users alike can be incentivized to use their smartphones to make mobile payments through rewards for usage or other value-added tools such as receipt tracking,” said Jim Bailey, managing director and head of Accenture Payment Services in North America. “As consumers expect their smartphones to improve and simplify their lives, financial institutions, merchants, mobile network operators and technology providers should consider incorporating new mobile payment applications to encourage broad adoption as quickly as possible.”

Reach BusinessNewsDaily senior writer Ned Smith at nsmith@techmedianetwork.com. Follow him on Twitter @nedbsmith.

Ned Smith

Ned was senior writer at Sweeney Vesty, an international consulting firm, and was Vice President of communications for iQuest Analytics. Before that, he has been a web editor and managed the Internet and intranet sites for Citizens Communications. He began his journalism career as a police reporter with the Roanoke (Va.) Times, and was managing editor of American Way magazine and senior editor of Us. He was a Captain in the U.S. Air Force and has a masters in journalism from the University of Arizona.