tech:

taffy

Mobile Payments Have More Than Doubled In Popularity

[Techtaffy Newsdesk]

IDC has announced the results of the eighth annual Consumer Payments Survey, focused on the usage of emerging payment technologies. According to findings in the new report, mobile payments have more than doubled in popularity, reaching over 33 per cent of survey respondents. Of those that had made a mobile payment, more than half used PayPal Mobile (56 per cent), with Amazon Payments and Apple’s iTunes service statistically tied at about 40 per cent. In addition, prepaid cards showed strong growth, particularly in the network branded and benefit submarkets.

Additional findings include:

Network-branded (open loop) prepaid cards have drawn neck and-neck with closed loop cards in consumer penetration. Strength was seen in all categories, including benefit and payroll cards. This could reflect economic and regulatory factors, as well as better marketing by banks and independent issuers.

For the second year in a row, both biller and bank-operated online bill pay sites were used by more than 50 per cent of the respondents. Overall, 73.5 per cent of U.S. consumers now use online bill payment. This confirms that online bill payment is now the dominant way we pay bills in the U.S.

Despite the popularity of digital downloads, such as apps and music, more respondents reported buying physical goods with their phones than online services, digital goods, or virtual currency.

Demand is clearly there, and banks need to make sure they are not left behind by non-banks that are more narrowly focused on the opportunity. In addition, reward programs are one of the strongest areas for banks to build upon, because banks already sit between most commercial transactions, and thus have the best data of any competitor. Banks also have a long history of offering rewards on their cards, and of working with retailers on cross-promotions. With the limits on debit card interchange creating a revenue gap, targeted offers offer a replacement revenue source, and can also anchor ventures in the prepaid and mobile payments markets.

In May 2012, IDC Financial Insights conducted a nationally representative survey of U.S. consumers focused on usage of emerging payment technologies. While the 2011 survey noted that the severe recession and financial crisis depressed adoption of several payment technologies by both financial institutions and consumers, the results this year were more in line with historic trends, and mobile payments in particular have become vastly more common. As a result, this year, IDC Financial Insights was able to expand the number of mobile payment questions to garner additional insight into how consumers are using them.

“Based on our results, we expect to see continued growth in open-loop prepaid cards and mobile payments next year, and believe that the improvements being offered in electronic bill delivery will break electronic bill presentment and payment (EBPP) out of its doldrums as well,” said Aaron McPherson, Practice Director, IDC Financial Insights. “The advent of new card-linked offer programs should increase the influence of rewards on the average consumer, however, this will depend on how many banks choose to move ahead aggressively with these programs, and how many merchants choose to support them.”

[Image Courtesy: Apple]

Just in

Apple sued in a landmark iPhone monopoly lawsuit — CNN

The US Justice Department and more than a dozen states filed a blockbuster antitrust lawsuit against Apple on Thursday, accusing the giant company of illegally monopolizing the smartphone market, writes Brian Fung, Hannah Rabinowitz and Evan Perez.

Google is bringing satellite messaging to Android 15 — The Verge

Google’s second developer preview for Android 15 has arrived, bringing long-awaited support for satellite connectivity alongside several improvements to contactless payments, multi-language recognition, volume consistency, and interaction with PDFs via apps, writes Jess Weatherbed. 

Reddit CEO Steve Huffman is paid more than the heads of Meta, Pinterest, and Snap — combined — QZ

Reddit co-founder and CEO Steve Huffman has been blasted by Redditors and in media reports over his recently-revealed, super-sized pay package of $193 million in 2023, writes Laura Bratton. 

British AI pioneer Mustafa Suleyman joins Microsoft — BBC

Microsoft has announced British Artificial Intelligence pioneer Mustafa Suleyman will lead its newly-formed division, Microsoft AI, according to the BBC report. 

UnitedHealth Group has paid more than $2 billion to providers following cyberattack — CNBC

UnitedHealth Group said Monday that it’s paid out more than $2 billion to help health-care providers who have been affected by the cyberattack on subsidiary Change Healthcare, writes Ashley Capoot.