Mobile payments have become a new way to pay over the past half decade. Some countries see a much quicker uptake where this new form of payment is concerned.
Mobile Payments in Turkey
It may come as a surprise to many people how Turkey is one of the front runners in terms of mobile payments. Research conducted by PwC confirms the country sees a strong preference for mobile transactions, although no one expects it to replace cash in the near future.
With 65% of Turkish respondents confirming they use mobile payments, the country is well ahead of most regions around the globe. As one would expect, the majority of users are people aged 30 or under.
New technologies and services like these are picked up quicker by younger generations. Those users are often more willing to experiment with new things, even financially.
An even more impressive statistic is how 90% of Turks expect to utilize mobile payments in the next five years. That shows there is a great desire to explore alternative ways of conducting payments in the country.
Who is Using it and for What?
The statistics already indicate Turkish women are far more keen on exploring mobile payment options. Nearly 70% of female respondents confirmed they use this method of payment, compared to just 43% among males. Both figures are still very strong, considering how this industry is still in its infancy.
As far as utilizing this form of payment goes, it is mainly used for [online] shopping, transferring money to other people, and paying for foods or drinks in restaurants. It is evident that consumers want convenience when paying for something. Taking out a smartphone is easier than dealing with cash or even payment cards. Mobile payments appear to be the way to go in Turkey, at least at this time.
It does not appear the Turks are intent on making big ticket purchases when paying via mobile. The shopping is mainly limited to clothes, shoes, and accessories. Even the money transfers are usually limited to rather small amounts of funds, such as splitting bills or paying back a minor loan.
The Perceived Advantages of a Mobile Payment
Consumers would not need other payment solutions if the existing offerings were adequate. For most Turks, a mobile payment makes paying for goods and services less complicated.
It also allows them to keep a better overview of their finances, as those are often checked via a smartphone application.This is part of the reason why using one device for financial services and transactions makes perfect sense to so many people.
The big selling point is how consumers no longer have to worry about their personal cash reserves. It is frustrating to attempt to buy something and not having enough cash on hand. Payment cards remove this problem from the equation, yet it seems Turkish consumers favor a mobile payment.
Despite this growth spike, key issues continue to affect the status of mobile payments. Overcoming these potential drawbacks will pose its own set of crucial challenges. Startups and established service providers need to pay attention to these concerns in the years to come.
While a mobile payment is extremely convenient, it can also cloud one’s judgment. Nearly nine in ten respondents is concerned mobile spending will encourage them to buy goods and services more quickly. As a result, they would “gorge” themselves on items they would not buy otherwise. Some form of budgetary control over spending habits could catapult the mobile payment industry to a new level.
Consumers in Turkey are also concerned over identity theft. Mobile payments expose information when a transaction occurs. If that information is obtained by criminals – through whatever means necessary – they could potentially impersonate innocent consumers.
Last but not least, consumers fear having their mobile device stolen and misused. This concept can apply to any form of payment, but losing a mobile device can have much broader implications. Many people store a lot of sensitive information on their device. It is also often linked to one’s social media and bank accounts. That type of access could give free reign to thieves and criminals to go on a spending spree.
Despite the legitimate concerns associated with mobile payments, the industry is expected to grow significantly in Turkey. So much even that the use of mobile transactions could increase by over 80% in the next five years. They will not remove the need for cash, as that form of payment will undoubtedly stick around for many more decades.