Tradition trumps tech in world of mobile payments

When it comes to making mobile payments, Americans favor tradition over technology.

Despite the introduction of several new mobile payment applications from big-name technology innovators, including Google, Apple and Twitter, consumers trust conventional big-name credit card companies to facilitate their transactions, according to a recent survey conducted by advertising giant Ogilvy & Mather.*  

The ad agency asked 500 online shoppers to pick from a set list all the brands they trust with mobile payments. Visa was the top choice, with nearly 40 percent of participants selecting the credit-card provider. MasterCard and American Express were close behind, with 36 percent each. Although only 16 percent of survey participants ranked eBay trustworthy, 34 percent expressed trust in eBay’s payment unit, PayPal.

Newcomers to the payments business didn’t fare well. For example, only 23 percent of survey respondents gave Apple a “thumbs up,” while 20 percent selected Google. Participants showed the least faith in Facebook, with only 12 percent expressing trust in the social network’s ability to facilitate mobile payments. In a surprising twist, these tech leaders lagged the U.S. Postal Service, which earned a trustworthy vote from nearly 25 percent of participants.

The survey data indicate established credit card companies have an advantage over well-known technology names entering the mobile payments business. But, behind the scenes, many of the tech brands count credit card companies and big-name banks among their partners. Survey creator Martin Lange, executive marketing director and worldwide head of mobile at Ogilvy & Mather, suggests these mobile payments newcomers capitalize on their financial-sector relationships.

In its report, Ogilvy & Mather did not specify the list of mobile payments players presented to respondents. If banks had been in the list of providers, could the outcome of this survey been altered?

“If you can partner with Visa, MasterCard, AmEx or a large bank, use that brand to elevate your service,” Lange said.* 

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