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Credit Card Applications » News » Other » Credit Card Rewards Still Favored Over Mobile Payment Perks

Credit Card Rewards Still Favored Over Mobile Payment Perks

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Credit Card Rewards Still Favored Over Mobile Payment Perks
November
26

The mobile rewards app market is getting more crowded by the day, with companies like Front Flip and Belly offering shoppers ways to scan and save using their smartphones. But although mobile payments are gaining in popularity, many consumers still prefer to get their rewards the old-fashioned way: through credit cards.

According to a recent survey, almost 42% of people said their favored way of earning points, bonuses and rewards is by using a credit card. Another 26% said they most often use a debit card to get rewards, and 26% said they weren’t sure what their favorite rewards-earning method was. Only 6% named mobile payments as their preferred way to get perks on purchases.

Is it safe?

Part of that could be due to lingering concerns about the security of mobile payments. Security dwarfs other worries when it comes to mobile payments. Nearly 78% of those polled said that security is their biggest concern when it comes to using mobile payments. Poor battery life (7%), difficulty of use (6%), lack of available rewards and bonuses (5%) and inability to track their budget (4%) were the other issues preventing people from making the mobile payment leap.

Overall, 44% of those surveyed said they don’t use mobile payments. Those who are using their phones to pay for purchases say that the best thing about mobile payments is how easy they are to use. Ninety-two percent of respondents listed ease of use as the biggest benefit to paying via smartphone.

Who pays by smartphone, and how much?

People under age 45 are more likely to use mobile payments than older folks, especially those in the 60+ age bracket. Only 24% of people ages 61 and older report using mobile payments, while the most likely to pay by smartphone is the 30-44 years demographic. Sixty percent of them say they use mobile payments.  Fifty-eight percent of people ages 18-29 utilize mobile payments and 48% of the age 45-60 set are pulling their phones out at the register.

Women are slightly more likely to use mobile payments than men, but it’s a close split along gender lines. Fifty-five percent of women, versus 48% of men, said they use mobile payments.

When asked how much they typically spend per-purchase using mobile payments, 34% said their transactions were usually more than $50. Nine percent said they most commonly spend between $25 and $50, 8% said it was somewhere between $10 and $25, and 3% said they pull out their phone for purchases between $5 and $10. Two percent said they’ve used mobile payments for purchases of less than $5.

The Credit Union National Association (CUNA) Mobile Payments Survey survey was conducted online and polled 1,046 mobile phone users across a representative sample of the United States, with reported household incomes varying from less than $25,000 to over $150,000 represented equally.

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