Mobile Payment Index Study


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Mobile Payment Index Study - 2012
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Mobile Payment Index Study

  1. 1. For informed direction Mobile Payment Index May 2012Private & Confidential© eDigitalResearch 2012
  2. 2. eDigitalResearch Mobile Payment Index Mobile Payment Index New quarterly eDigitalResearch study looking at the uptake and general consumer perceptions of mobile payments and NFC Private & Confidential © eDigitalResearch 2012 2
  3. 3. eDigitalResearch Mobile Payment Index: Introduction The explosive uptake of smartphone devices and mCommerce by consumers has been hard to miss, changing forever the way in which we browse, buy and communicate. The introduction of NFC technology and contactless mobile payments are likely to change all of this again and revolutionarise the way in which we perceive our mobile devices. The essential mental check list of ‘keys, wallet, phone’ every time you leave the house will soon be a thing of the past. eDigitalResearch have been tracking the development of mCommerce since October 2009 when the channel was still in its infancy. Like the Internet, we’ve watched mobile become a customer touch point in it’s entirety, driven completely by consumer demand. 2012 has been dubbed by many as the ‘Year of NFC’ when industry experts feel that everything will align and contactless mobile payments will become a major part of our high street shopping experience. With that in mind, eDigitalResearch have begun surveying consumer behaviour and attitudes towards the technology, benchmarking results quarterly and tracking changing trends. Unlike mCommerce, with mobile payments, it will be retailers, technology providers, handset manufacturers and banks who will be driving the change. Without access to the technology, consumers will be unable to use contactless mobile payments. This study, the first of it’s kind, looks to understand current consumer thinking towards contactless mobile payments and covers consumer demand to the barriers that currently stand in the way of widespread adoption. Private & Confidential © eDigitalResearch 2012 3
  4. 4. eDigitalResearch Methodology A survey was sent to a consumer panel between the 13th and 18th March 2012. 2,078 responses were collected in total: 1,068 were completed by smartphone owners and 1,017 were completed by non- smartphone owners. The survey covered all areas surrounding contactless mobile payments, including: Awareness Previous use, early adopters and satisfaction Future use Perceived benefits and limitations Improvements and Regulation The survey also looked at consumer perceptions surrounding the use of contactless mobile payment around the Olympic Games, as well as mobile apps designed specifically to make mobile payments to individuals. eDigitalResearch will continue to run the Mobile Payment Index on a quarterly basis, in order to help companies and organisations better understand contactless mobile payment use, track developments, and plan for the future. This is the first study of it’s kind. Private & Confidential © eDigitalResearch 2012 4
  5. 5. Mobile Payment Index resultsPrivate & Confidential© eDigitalResearch 2012 5
  6. 6. eDigitalResearch Mobile Payment Index: Key Findings General consumer awareness of contactless mobile payments is still relatively low. Retailers, handset manufactures, network providers and banks will all need to work together to improve this. Almost half (44%) of those that already have the technology enabled on their smartphone devices have already used contactless mobile payments to make a purchase. Results show that early adopters are predominately young males. Satisfaction amongst early adopters is very high, suggesting that once used, consumers are likely to want to use it again. Mobile payments are likely to increase over the next year, especially amongst smartphone owners Consumers are most likely to use contactless mobile payments at supermarkets, fast-food outlets, cafes, and public transport links, places where queuing times can often exceed customer expectations. Security is the one, fundamental concern surrounding contactless mobile payments. Providers will need to work together to help increase consumer trust. Private & Confidential © eDigitalResearch 2012 6
  7. 7. eDigitalResearch Conclusions Security remains a key concern for consumers, and unless more can be done to reassure potential contactless mobile payment users, is likely to dampen the growth of NFC technology in the UK. Whilst the introduction of payment apps and other mobile enabled payment devices is helping to build consumer awareness, the media glare on security and other certain risks is helping to prevent widespread consumer adoption. In order for the UK to achieve the sort of NFC and contactless mobile payment growth predicted in 2012, it is essential that payment providers, retailers, banks and mobile manufacturers work together to put into place the following three essential key features: Consumer awareness: build the public’s knowledge and address security concerns. Retailer adoption: greater awareness will build as more and more retailers encourage their customers to use the technology. Access to technology: contactless mobile payments are currently only available to a select few due to the limited number of NFC enabled handsets available on the market. Private & Confidential © eDigitalResearch 2012 7
  8. 8. eDigitalResearch Contactless Mobile Payment: Awareness Before this survey, were you aware of what Contactless Mobile Payments were? 67% of survey respondents have heard of Contactless Mobile Payments before, yet only 17% of people are ‘completely aware’ of what it is. 36% 33% 17% 15% Yes, completely Yes, partly No, but I have heard of it No, never heard of it n=2,078 Private & Confidential © eDigitalResearch 2012 8
  9. 9. eDigitalResearch Contactless Payment: Awareness Have you seen any Contactless Mobile Payment Points or symbols before? 15% 24% Of the 2,000 consumers surveyed, 61% haven’t seen contactless mobile payment points before, whilst just 15% claim that they have. Of that 61% 15%, 29% live in London or the South East. n=2,016 Private & Confidential © eDigitalResearch 2012 9
  10. 10. eDigitalResearch Contactless Mobile Payment: Awareness Are you aware of any of the following types of goods or service providers that have Contactless Mobile Payment points? Supermarkets Fast-food outlets Public transport links Cafes/cofee shops Restaurants Department stores Awareness of contactless mobile Smaller retailers payment points mirrors those brands and retailers who are already investing Hard good retailers in the technology, such as Entertainment venues supermarkets, fast food outlets and coffee chains like Starbucks. Soft good retailers Other 0% 2% 4% 6% 8% 10% 12% n=2016 Private & Confidential © eDigitalResearch 2012 10
  11. 11. eDigitalResearch Mobile Wallets: Awareness Before this survey, were you aware of what Mobile Wallets and/or Mobile Wallet payments were? 54% Awareness of mobile wallets is considerably lower than contactless mobile payments. Just one third (33%) of those surveyed have never heard of contactless mobile payments, whilst over half (54%) have no previous knowledge of mobile wallets whatsoever. 20% 19% 7% Yes, completely Yes, partly No, but I have heard of it No, never heard of it n=2,016 Private & Confidential © eDigitalResearch 2012 11
  12. 12. eDigitalResearch Mobile Wallets: Awareness Do you know how to use a Mobile Wallet to pay for goods or services? 74% Consumer knowledge surrounding the use of mobile wallet technology is particularly limited. Respondents seemed very unconfident on how to actually use it to pay for goods and services and is something that all parties (retailers, technology providers and banks) will need to work on together to improve. 20% 6% Yes, completely Yes, partly No n=2,016 Private & Confidential © eDigitalResearch 2012 12
  13. 13. eDigitalResearch Contactless Mobile Payments Do you have a Mobile Wallet on your handset, or the ability to make Contactless Mobile Payments via your phone? 64% Of those respondents who own a smartphone, just 4% have NFC technology available on their handset. One third (32%) of smartphone owners are unsure, reflecting the considerable amount of confusion surrounding the technology and reaffirms the need to increase 32% awareness around contactless mobile payments. 4% Yes No Dont know n=1,904 Private & Confidential © eDigitalResearch 2012 13
  14. 14. eDigitalResearch Contactless Mobile Payment use Have you used your phone to make a payment before, using Contactless Mobile Payment Point? 47% 47% Of the small percentage that do have NFC enabled handsets, an encouraging 47% have already used the technology to make a purchase. 6% Yes No Not sure n=79 Private & Confidential © eDigitalResearch 2012 14
  15. 15. eDigitalResearch Early AdoptersResults show that the majority of early adopters of contactless mobile technology are young males agedbetween 25-34. Male Female 18-24 25-34 35-44 45-54 8% 13% 32% 31% 68% 48% n=79 Private & Confidential © eDigitalResearch 2012 15
  16. 16. eDigitalResearch Contactless Mobile Payments: Previous use Where have you used Contactless Mobile Payments? Supermarkets Resaurants Department stores Fast-food outlets Soft goods retailers Hard goods retailers Over half (53%) of those that have already Smaller retailers made a contactless mobile payment, have done so at a supermarket. Interestingly, Public transport links more consumers have used the technology in more traditional retail settings than Cafes / Coffee shops fast food outlets and cafés, despiteEntertainment venues these brands having invested more in NFC systems. None of the above 0% 10% 20% 30% 40% 50% 60% n=37 Private & Confidential © eDigitalResearch 2012 16
  17. 17. eDigitalResearch Contactless Mobile Payment: Previous useOf those survey respondents that have used ContactlessMobile Payments to make a purchase, the majority have 6% 5% 6%used the technology to purchase small to medium Less than £5items and on average spending £6.76 per purchase. 11% £5-£10 8% £11-£20 £21-£50 59% 17% £51-£80 54% 22% £81-£100 £101-£200 25% More than £200 n=37 27% 14% 3% Small purchases e.g. Medium purchases e.g. Big purchases e.g. High-end purchases Don’t know sandwiches books, CDs, DVDs weekly food shop e.g. holidays n=37 Private & Confidential © eDigitalResearch 2012 17
  18. 18. eDigitalResearch Future use How likely are you to use it again? 62% 62% of previous contactless mobile payment users said that they were ‘Very likely’ to use the technology again, whilst an additional 24% said they were ‘Quite likely’, suggesting that satisfaction with the technology is very high overall. 24% 11% 3% 0% Very likely Quite likely Not sure Quite unlikely Very unlikely n=37 Private & Confidential © eDigitalResearch 2012 18
  19. 19. eDigitalResearch Contactless Mobile Payment: Satisfaction How satisfied are you with using Contactless Mobile Payment Points to make a payment? Satisfaction amongst previous users of the 24% technology is extremely high. 43% rate the technology extremely highly, giving a score of 9 22% or above. 19% This suggests that users are likely to use the 16% technology again, reaffirming the significance of increasing consumer awareness and 14% confidence surrounding contactless mobile payments to encourage more first time users. 3% 3% 0% 0% 0% 0% 0 1 2 3 4 5 6 7 8 9 10 n=37 Private & Confidential © eDigitalResearch 2012 19
  20. 20. eDigitalResearch Contactless Mobile Payment: Future use 18% of smartphone owners are either ‘Very likely’ or ‘Quite likely’ to use contactless mobile payment within the next year, whilst an additional 34% are not sure - most likely due to the fact that they currently do not have the technology available on their smartphone devices and are unsure of when this functionality will be rolled out on more handsets. It’s important, however, that mobile firms, technology providers and retailers work to increase consumer awareness and convert this segment of consumers into contactless mobile payment users. How likely are you to use contactless mobile payments in the next one year? 38% 34% 12% 9% 6% Very likely Quite likely Not sure Quite unlikely Very unlikely n=1,979 Private & Confidential © eDigitalResearch 2012 20
  21. 21. eDigitalResearch Future use Of those that said that they would be either ‘Very likely’ or ‘Quite likely’ to use contactless mobile payments within the next year, 29% are males aged between 25-34, whilst 32% are females within the same age range. Male Female 18-24 25-34 35-44 45-54 55-64 65+ 18-24 25-34 35-44 45-54 55-64 65+ 7% 4% 5% 10% 10% 16% 29% 18% 32% 21% 23% 25% 24% of early adopters said that the maximum they would be willing spend using contactless mobile payments was between £11-£20, whilst an additional 22.8% said that they would not be willing to spend above £50. Private & Confidential © eDigitalResearch 2012 21
  22. 22. eDigitalResearch Future use Where would you use Contactless Mobile Payments? Supermarkets Resaurants Fast-food outlets Future users would be most Public transport links likely to use the technology at supermarkets, fast Cafes / Coffee shops food outlets, café’s and public transport links,Entertainment venues where waiting can Department stores traditionally take up a considerable amount of Smaller retailers time, and where consumers feel that they would see Soft goods retailers the greatest benefit. Hard goods retailers None of the above 0% 10% 20% 30% 40% 50% 60% 70% 80% n=368 Private & Confidential © eDigitalResearch 2012 22
  23. 23. eDigitalResearch Future use Why are you unlikely to use Contactless Mobile Payments in the near future? 58% 35% 28% 29% 22% 21% 23% 14% 15% 13% Happy with Concerns Have no Im not Unsure how Limited places The I Unsure of Dont want Not likely tohow I pay at about reason to use interested in it the I can use it have/want which phones that get a newthe moment security/fraud it technology doesnt allow allow technology phone that works contactlss contactless enabled on allows mobile mobile my phone contactless payments payment mobile payment A lack of information and understanding, as well as concerns over security are major factors stopping consumers from using the technology in the foreseeable future. Other barriers include a lack of knowledge when it comes to NFC enabled handsets. n=1,616 Private & Confidential © eDigitalResearch 2012 23
  24. 24. eDigitalResearch Perceived Benefits Ease and convenience are seen as the main consumer benefits of contactless mobile payments. Worryingly, almost one third (32%) don’t see any benefits whatsoever. However, 56% of these are non smartphone owners and are therefore unlikely to have access to the technology in the near future. 32% What do you think are the benefits of using Contactless Mobile 32% Payments to make a purchase? 29% 29% 22% 17% 15% 15% 9% 6% 6% 4% 3% Convenient Easier to Quick to No paper Better able Its safe Less likely It uses the It is There are The Other I dont to pay with pay with pay with receipts so to keep and secure to latest moving lots of technology think there mobile mobile mobile less track of encounter technology forward paypoints is are any than taking change of how much fraud with the around available, benefits cash/cards losing I am times so why not with me personal spending info n=2,016 Private & Confidential © eDigitalResearch 2012 24
  25. 25. eDigitalResearch Perceived Limitations Security and fraud are currently the biggest barriers to widespread adoption, as well as concerns over technical issues. However, as retailers, providers and manufacturers work together to improve consumer knowledge and access, we would expect the amount of people concerned about how the technology works, access to pay points and NFC enabled handsets to decrease over the course of the coming months. What do you see as the limitations of using Contactless Mobile Payments to make purchases? 51% 38% 34% 31% 29% 28% 23% 23% 22% 13% 7% 7% 4% Can only be Not needed, There is a More Hard to keep Concerns over More open to Too Not much clarity Not enough pay Technology not Other There are no used for certain can pay using maximum susceptible to track of how security fraud technologically on how much to points around available on all limitations purchases cash/cards spend limit technical issues much I am advanced pay/how it phones spending n=2,016 works Private & Confidential © eDigitalResearch 2012 25
  26. 26. eDigitalResearch Contactless Mobile Payments: Regulation Who do you think should be responsible for regulating mobile payment technology? 40% 38% 35% 34% 21% 21% 19% 19% 16% 15% 10% 7% 0% 1% Of the 2,000 consumers surveyed, 40% of consumers feel that regulation responsibilities should fall to mobile phone networks, whilst 35% feel that banks should take up the mantel. Only 15% feel that the responsibility should lie with handset manufacturers and suggests that if banks and mobile networks work together to increase consumer trust, they are likely to make the biggest strides. n=2,016 Private & Confidential © eDigitalResearch 2012 26
  27. 27. eDigitalResearch Contactless Mobile Payments: Improvements We asked all 2,000 survey respondents what improvements they think need to be made to Contactless Mobile Payments. Better/Tighter security: 22.8% of respondents do not feel confident enough that there is enough security surrounding Contactless Mobile Payments More information: 10.34% of consumers feel that more information is needed to help increase awareness. Similarly, an additional 6.9% felt that they didn’t have enough information on Contactless Mobile Payments to make a comment within the survey, reaffirming the importance of increasing awareness. More pay points: 8.75% of respondents felt that the lack of available places where they could use Contactless Mobile Payments was holding back the technology. To improve, retailers and technology providers need to look at integrating more pay points around stores, as well as branching out to all locations. Technology available across all mobile devices: 1.3% of respondents wanted to start using the technology yet couldn’t because NFC technology is only available to a select number of mobile users. We would expect this figure to drop though as more and more popular makes and models include the technology. Private & Confidential © eDigitalResearch 2012 27
  28. 28. eDigitalResearch Mobile Payment Apps After the introduction of Barclay’s Pingit app, we decided to ask consumers what their views and opinions were on this type of technology and how possible widespread adoption is likely to be. How likely would you be to use an app like Pingit to make payments if your bank introduced the same technology? 34% 38% 12% 9% 6% n=1,632 Very likely Quite likely Not sure Quite unlikely Very unlikely 75% Why have you not used the Barclays Pingit app? 41% 23% 20% 16% 13% 16% 12% 11% 1% Never heard Not a Phone not Happy with Concerns Had no Im not Unsure of Dont know Other of it Barclays compatible how I pay at about reason to use interested in how the anyone else I customer the moment security/fraud it it technology can use it n=1,969 works with Private & Confidential © eDigitalResearch 2012 28
  29. 29. eDigitalResearch Mobile Payment Apps Are you more or less likely to trust this method of payment if it is being endorsed by banks? 55% 31% 15% n=2,016 More likely to trust it Less likely to trust it Doesnt make a difference Again, general consumer awareness surrounding this type of technology is very low, with 75% of those surveyed claiming that they had never heard of the app. However, there appears to be a lot more trust of this type of technology when compared to contactless mobile payments, with just 13% of the 2,000 surveyed claiming that they had concerns over security and fraud. Almost 1 in 5 (18%) said that they were likely to use the technology if their banks introduced a similar app, whilst an additional 34% are not sure, suggesting that if more information is provided to consumers, then uptake may be higher. Private & Confidential © eDigitalResearch 2012 29
  30. 30. About eDigitalResearchPrivate & Confidential© eDigitalResearch 2012 30
  31. 31. eDigitalResearch eDigitalResearch mobile insight solutions In store QRApp mCommerce codes Mobile detection technology Automatically detects when a user is accessing a survey through a PC or mobile device (smartphone and tablet) and serves them either a standard or mobile enabled survey Currently tracking around 10% (+100% yoy) survey completes from a mobile or tablet device for all eDigitalResearch surveys ‘Younger fashion’ most popular sector for completing surveys on mobile Private & Confidential © eDigitalResearch 2012 31
  32. 32. eDigitalResearch Mobile Marketing Research Association eDigitalResearch are very proud to be a Founding Member of the MMRA eDigitalResearch, along with other members, will be working alongside the MMRA to develop and promote professional standards and ethics in mobile market research. eDigitalResearch’s mobile studies include: • Tracking rise of mCommerce with consumers since October 2009 • Benchmarking emerging mobile retail sites since August 2010 • Benchmarking mobile retail Apps since April 2010 • Comparing cross channel consumer experience across eChannel’s since December 2011 Private & Confidential © eDigitalResearch 2012 32
  33. 33. eDigitalResearch Who we are and what we do We are one of the leading providers of digital market research • established in 1999 by current directors/owners • self funded, financially secure, clear ethics • own system with outstanding technical support • team of research professionals We are migrating traditional market research to digital methodologies • reducing costs – fixed pricing model • faster results – real time results • improving accuracy – no response or panel limits We are developing and introducing innovative research solutions • social networking (digital communities) • maximising respondent engagement • industry norms/benchmarking • mCommerce/mResearch Company Partners Private & Confidential © eDigitalResearch 2012 33
  34. 34. eDigitalResearch Product Overview eMysteryShopper eDigitalSurvey • ‘Open’ user research • ‘Closed group’ research • Visitor/user opinion • Usability & • Key performance ‘end to end’ experience indicators • Benchmarking • Brand advocacy Verbatim Coding • Automated qual-to- HUB ePanelManager Insight and quant text analysis Analysis • Omnibus research •Full reporting of • Client panel verbatim comments management across any digital • Media panels medium eDigitalCommunity • Web 2.0 • 3 way dialogue from profiled users • Product ratings • Net chats Private & Confidential © eDigitalResearch 2012 Page 34
  35. 35. For a bespoke research programme designed specifically to gain insight and understanding into your mobile audiences, please Vanbrugh House, Grange Drive contact Lynda Baker, Business Hedge End Development Manager at Hampshire SO30 2AF Tel: 01489 772920 Similarly, if you would like more information on the results then please contact eDigitalResearch by @eDRtweet emailing eDigitalResearch Key Contacts: Lisa Bonczyk – Associate Director, Sales and Marketing– Liana Vickery – Marketing Executive - liana.vickery@edigitalresearch.comPrivate & Confidential© eDigitalResearch 2012 35