Greater Consumer Payment Adoption Hinges on Education

Similar to last year, insights from Expectations & Experiences: Consumer Payments, the latest consumer survey from Fiserv, show the majority of consumers (59 percent) paid bills online in the past 30 days. Yet, steady use of payment services may be driven by convenience rather than comfort, with nearly half who are involved in managing bills expressing concerns about security. At the same time, interest in new features and functionality is growing, but nearly half of consumers are confused by the different financial products and services available today.

“Consumers are continually raising the bar for what they need and expect when it comes to moving and managing their money, and these results reinforce that payments are more than a transaction and central to the brand experience,” said Devin McGranahan, senior group president, Fiserv. “Even as consumer preferences evolve and new innovations gain traction, consistency and execution remain the hallmarks of billing and payments strategy. Billers and financial institutions can meet their customers where they are with intelligent payments experiences that drive relationships and satisfaction.”

Always Connected, Insecure About Security

About half of consumers (53 percent) agree they like to be connected to the internet at all times, yet an equal number (53 percent) say they strongly distrust internet security or privacy. Generally, concern over security is a commonly cited factor hindering digital financial services adoption, and an opportunity for financial services to both remind and educate consumers about security steps and best practices.

For instance, half of consumers involved in bill management report overall concerns related to paying bills, a number that rises to 64 percent for early millennials (ages 18-26). Among those consumers involved in bill management, 30 percent reported increased concern with paying bills online due to security.

Among those who have not used mobile banking in the past 30 days, security remains the top concern (57 percent), and is also a factor in why some consumers have not used person-to-person (P2P) payments through a financial institution. In contrast, concern about online security and protecting personal information (24 percent) ranked third behind preference for other payments methods (44 percent) and unwillingness to pay a fee (38 percent) as reasons for not using P2P payments.

Read more at Finextra.