Payment technology

Alternative payment methods see slowdown in growth, despite popularity

Mobile PaymentIDC Financial Insights released a new report on Monday that showed a decline in online bill payment usage and a slowdown in the adoption of mobile payments.

According to the survey, which polled U.S. consumers on emerging payment methods and technology, online bill payment usage declined slightly for the second year in a row, despite strong overall adoption.

Mobile payment adoption, similarly, has seen a growth surge in recent years, but the survey showed the increase in 2013 was smaller compared to recent trends. More than 37 percent of respondents reported using a mobile payment method, though the increase was a modest gain over the previous survey.

Consumers who reported using mobile payments most frequently said they use PayPal Mobile, which was used by more than half of all respondents in the survey, beating out Amazon Payments and Apple iTunes.

“After several years of growth, the market for ‘alternative’ payment methods is now entering a period where adoption gains may come more slowly and where simply providing an alternative isn’t enough,” James Wester, the research director for Worldwide Payment Strategies and the author of the report, said. “Instead, providers need to offer products that add value beyond the payment.”

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