NEW YORK (MainStreet) — ApplePay, Apple's new digital payment system announced today, will allow consumers to leave their credit cards and cash at home and pay instead with the new iPhone 6 handset. But the much-heralded frictionless payment system is up against a significant obstacle: the majority of Americans still fear mobile payment platforms, especially in light of recent data breaches.
Despite the gospel out of Cupertino, American consumers are not planning to replace their wallets with smartphones anytime soon, with more than six in ten people who said they would either never or hardly ever use their phones to make purchases, according to a new CreditCards.com report.
Resistance to Change
Using mobile phones to make payments does not appear to be appealing to Americans despite its convenience, said Daniel Ray, editor-in-chief of CreditCards.com, the Austin credit card comparison website.
The survey found that only 4% of Americans say they would always use their mobile phone to make a purchase and only 9% said “most of the time.”
“Ingrained habits are holding people back,” he said. “Something needs to occur to break people out of their stupor. Apple has a big yawning gap to overcome. The topic of mobile payments has caused people to yawn.”
It remains to be seen whether ApplePay, which can store major credit cards such as American Express, MasterCard and Visa with its encrypted near-field communication (NFC) technology, will be a game changer for consumers who are tired of continued data breaches. A number of popular retailers such as Whole Foods, McDonald’s and Macy’s have already signed on.