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Study: Young people trust banks for mobile payments

A report from Bank Technology News said that young people may actually be more trusting of the tried-and-true versus new technology, at least when it comes to financial services.

The post cited a new study from Market Strategies International that found nearly half (46 percent) of consumers ages 18-34 said they prefer an established financial services company to provide mobile payment services over a technology company or wireless provider. That compared with 44 percent of adults ages 35-44, and 51 percent of adults older than 55.

Only 17 percent of young consumers ages 18-34 expressed a preference for having a technology company provide mobile payment services. Ten percent of that group said a mobile network operator would be their preference.

"We tested the hypothesis that younger folks who are quick to adopt new technology and are willing to put their entire lives in Facebook trust these alternative providers more than they do banks, and found no support for that theory," said Mark Willard, senior vice president and head of Market Strategies' financial services division, in the BTN story.

"In fact, younger consumers seem even more focused than other groups on getting mobile-payment services from their current bank," Willard said.

Other possible providers of mobile payments ranked in the study according to trust are Visa at 74 percent, PayPal at 66 percent and MasterCard at 65 percent. Google, the only one on the list with an actual mobile payment product, came in at 18 percent, tied with Apple and barely above mobile network operators at 17 percent.

According to the study, younger people are more willing to use mobile payment methods immediately. Nearly one quarter (24 percent) of consumers ages 18 to 34 said they would begin using mobile payments "right away," and another 56 percent said they would use them eventually.

However, Willard said the trust advantage banks currently enjoy may not last forever.

"Banks are seen as the logical providers of mobile payments, but a truly disruptive type of new technology or a new approach to mobile payments could erode that advantage completely," Willard said.

For more stories like this, visit the Trends/Statistics research center.