Study: Quarter of Brits make mobile credit card payments

By UK CreditCards.com

A new survey suggests that many British consumers are just as comfortable making credit card payments with a mobile device as they are via a computer. Research by Tealeaf, a company that specialises in online customer experience management software, found that 23% of consumers who use the internet made a transaction using a mobile device last year. The survey also revealed that expectations for mobile payment services are high, as 66% would be less likely to buy from a brand following a bad experience with their mobile.

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Mobile commerce becoming more common
Online shopping has become something of the norm in the UK, with research published by Sainsbury's Finance in November 2010 showing that the average Briton spends £192 online using their credit cards each month. Now, new research from Tealeaf, conducted by Harris Interactive, shows that consumers are becoming more comfortable with an even more convenient way of making credit card transactions, in the form of mobile payments.

According to the company's poll of 2,228 over-16s, 23% of online adults in the UK (which equates to about 10 million people) performed a mobile transaction last year, compared with just 18% in the US. Of those who spent on their credit card via their mobile, 63% said they used it for shopping, 34% made a travel booking and 23% made an insurance payment. The research also revealed that mobile shoppers made an average of 4.4 transactions in this way per month.

Customers expect a smooth transaction
Mobile commerce may be a relatively new way to shop, but Tealeaf found that consumers still demand reliability. Three-quarters of respondents said there was no reason why a mobile transaction should not be successful at the first attempt and 66% admitted they would be less likely to buy from a company again if they experienced a problem while paying via their mobile device. Of those who had already encountered difficulties, 34% said they had received error messages and 24% reported problems with navigation.

Geoff Galat, chief marketing officer at Tealeaf, says there is an "increasing appetite" for conducting transactions on mobile devices and that consumers clearly expect the same levels of customer experience that they would encounter on other online channels. However, "at present, mobile consumers find the convenience of transacting anywhere is offset by unsatisfying and unproductive experiences," observes Mr Galat. "Mobile consumers are no more willing to tolerate poor experiences than customers accessing websites from their desktops."

See related: Credit card details found on old mobile phones; Transport for London introduces contactless card payments for Tube, tram and DLR

Published: 11 April 2011