While the majority of shoppers are happy to store debit or credit card details with online sites, many are still yet to make the leap to storing payment details within mobile apps.
That’s the key finding of a survey of 2,000 UK adults commissioned by digital payment company Skrill.

The study found that only 14 per cent of people are currently choosing to buy goods and services via apps linked to their credit or debit cards stored online. One of the main hurdles for in-app purchasing is that people remain concerned about security. 30 per cent of those polled who don’t use apps that store their card details worry that their personal details could be stolen.

Despite this, figures from Juniper Research suggest that mobile phone and tablet users will carry out 195bn mobile transactions annually by 2019, up from 72bn this year. For those that are using in-app purchasing, the biggest advantage is seen to be not having to re-enter card details for every purchase (26 per cent). A further 22 per cent of respondents said that the speed and convenience of in-app transactions were the most important benefits.

“Over time, consumers have become comfortable paying for goods online,” said Spiros Theodossiou, VP product management at Skrill. “However, they are still on a journey to accepting in-app purchasing as a regular channel for buying goods and services. Our research shows that people who have adopted the technology have really seen the benefits.

“With significant developments, including major wearable technology announcements, public transport going contactless and some major players coming into mobile payments, the way we pay is changing. This could trigger wider acceptance of in-app payments, with more consumers taking advantage of the greater ease of use and speed when shopping, gaming and downloading music. For this to occur, businesses will need to demonstrate the ease of use these apps offer in order to reassure users that they offer a safe way to pay and guide them along this new payment trend as it grows in popularity.

“The onus is on businesses to not only support the highest levels of security and cryptology, but to also encourage their customers to follow best practice such as reading app reviews and installing all updates. These often include improved security settings, which will help to realise the huge benefits of in-app payments.”