A Third of Consumers Cite Security for Avoiding Mobile Bill Payments

Mobile wallets have gained significant popularity in recent years, providing consumers with a convenient and fast way to make purchases without the need for cash or physical cards.

The recent rise of this payment method has driven consumer acceptance of contactless payments. Around 60% of U.S. consumers used mobile wallets to pay bills in the last 12 months, according to research from PYMNTS Intelligence.

However, consumers who eschewed mobile wallets cited security as their main concern, as well as inconveniences and payments issues. 

“Digital Bill Payments: Mobile Wallets Gain Popularity, but Hurdles Remain,” is a PYMNTS Intelligence research study conducted in collaboration with ACI Worldwide. This edition details consumers’ experiences with mobile wallet bill pay, including their preferences and frustrations as well as what they hope to see next when it comes time to pay their bills. 

Reasons for not using mobile wallets

As extracted from the study, nearly 35% of consumers who did not use a mobile wallet to pay a bill cited security concerns as the most important reason for not doing so, while 16% cited inconvenience, and 14% payment issues. These are the main obstacles that contribute to consumers’ hesitancy to use mobile wallets for bill payments. 

Source: PYMNTS Digital Bill Payments: Mobile Wallets Gain Popularity, but Hurdles Remain, June 2023 N = 1,264: Consumers who have used a mobile wallet for bill pay in the last 12 months, fielded March 2, 2023 – March 7, 2023.

Companies that can eliminate these obstacles by improving their security measures and making their platform more user friendly are more likely to attract new customers.

As PYMNTS Intelligence found, 40% of consumers experimented with new digital wallet services in the last year, and most cited convenience and speed as the primary factors influencing their decision. Among these consumers, 48% of those who switched mobile wallets did so because of ease of use, while 40% did it to save time.