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using smartphones this year, according to the online data While surcharging offers basically the
portal Statista – most consumers aren't using those devices same benefit to merchants as cash discounting,
to make payments. CNBC reported in August 2019, that consumers tend to prefer discounts to paying
adoption rates for mobile payment apps (think Apple Pay,
Google Pay and Samsung Pay) hover below 10 percent. surcharges. Plus, cash discount programs are
easier to implement.
I'm often asked why mobile payments have been slow to
gain traction in the United States when they seem to be expensive, complex and require difficult to implement
taking off in other, less developed countries. eMarketer. technology, they argued.
com recently published a report predicting that 36.3
percent of smartphone users would make in-store mobile I believe there's a more important factor: ingrained habits.
payments in 2019, but noted nearly all users would be in Americans have long embraced plastic (credit and debit
the Asia-Pacific region, mainly China. cards) as cash replacements, and the rewards programs
attached to cards can be a big draw. Besides, pulling
There are good reasons why mobile payment apps are out a card and inserting it in a POS device (or better
faring better in these countries. The most obvious of these yet, tapping it on a device) is easier than pulling out a
is that cash is often the only other alternative. And in some smartphone, unlocking it and pulling up a payments app
countries, like India, the government actively encourages to execute a payment. And unless and until consumers
digital payments over cash. overcome entrenched preferences for using plastic cards
to make payments, merchants aren't going to demand
A retailer-led group, the Secure Payments Partnership, mobile payment acceptance solutions from their payment
recently issued a report pointing a finger of blame for slow processing partners.
uptake at EMVCo, the security standards group owned
by the major card brands. EMVCo standards for near
field communication have stymied competition in mobile Patti Murphy is senior editor at The Green Sheet and self-described pay-
payments, the report authors asserted. The standards are ments maven of the Fourth Estate. Follow her on Twitter @GS_PayMaven.

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