Why consumers are snubbing mobile payments

Gone are the days when people paid their bills by cheques, it was mostly prevalent up to the 70s. A decade or two later came the plastic money that reigned the influenced the consumer behavior and payment mode like a behemoth.

While credit cards made people lose control over their spending, debit cards came along quickly as a solution. Now the electronic money had almost replaced cash and checks to make payments. The electronic payments have elevated the markets, the consumer behavior and the profits of the card issuing companies or banks.

However, do you know who pays the most to facilitate this most convenient mode of billing and payments to the end consumer? It’s the merchant, who has to pay hefty interchange fees that card associations charge him to accept payments using the cards. These merchants specialize in providing accounts to low risk businesses and there are also high risk merchant account providers catering to risky online businesses, which are more susceptible to frauds and chargeback.

Due to such discrepancies attached to electronic payment, a would-be fleet of disruptors are trying to displace the mobile payments. Mobile payment is the latest and most anticipated mode of smart money in the present time. While all the big payment gateways like PayPal, Google Wallet, Square, Braintree, Stripe Money etc are quickly adding to the list of latest entrant, consumers are responding to it rather disappointingly.

The mobile payment of concept has been unable to pick up mainly because it doesn’t offer any compelling benefit for consumers or even merchants. Reportedly, Google Wallet has also failed to offset the mobile payment concept, because of extremely high fees owed for it to the credit card companies that it works with.

Besides, the increasing rate cyber crime has also compelled consumers and merchants to snub mobile payments. They do not want another technology lapse that could expose their sensitive information to criminals.