The Mobile Moment - Chadwick Martin Bailey · Have your mobile wallet company monitor your account...
Transcript of The Mobile Moment - Chadwick Martin Bailey · Have your mobile wallet company monitor your account...
The Mobile Moment: Barriers and Opportunities for Mobile Wallet Spring 2013
Smartphone ownership and online shopping are nearly ubiquitous, but the battle for mobile wallet market share has just begun.
What do consumers really know about the advantages of mobile wallets, and what can you do to increase adoption?
Barriers
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8%
42% 50%
Familiarity with Mobile Wallet
Very familiar
Somewhat familiar
Unfamiliar
16%
22%
62%
Use of Mobile Wallet
Used in past 6 months
Not used, but plan to
Not used, and do not plan to
Mobile wallet is a new concept, just half are familiar with the technology, but of those who are familiar, nearly one-quarter are looking forward to adopting
Base: All Respondents ● Q11: Companies offer the ability to pay by swiping or tapping your smartphone at the cash register, instead of using cash or credit cards. How familiar are you with this technology? Base: Those who have knowledge of mobile wallet ● Q12: Which of the following actions have you taken in the past 6 months or plan on taking in the next 6 months? 3
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11%
16%
17%
19%
19%
19%
21%
34%
54%
73%
It's too difficult on a small screen
The technology doesn't always work properly
I don't know which app is best
It's not available at stores where I would want to use it
No single payment system across the different merchants
It's not as convenient as using cash or credit card
Credit cards offer me better rewards than mobile wallets
I don't want the store to have my mobile wallet information
I don't want to pay any fees associated with using a mobile wallet
I am worried about security
Barriers to Using Mobile Wallet
For the 62% who don’t currently plan to adopt a mobile wallet, predictably, security tops the list of concerns
Base: Those who have not waved or tapped mobile phone at cash register to pay for a purchase in past 6 months, do not plan to in next 6 months, and have knowledge of mobile wallet ● Q15: Which of the following reasons prevent you from using a mobile wallet?
Notably, the benefits to adopting mobile wallet, over traditional payment methods, aren’t obvious to most consumers
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consumerpulse
6%
19%
34%
52%
57%
60%
70%
A virus
Getting charged for accidental transactions
Hacking service provider database and loss ofdata
Hacking of mobile phone and loss of data
Interception of personal information as youperform a transaction
Theft of phone and loss of personal informationas a result
Identity theft
Security Concerns
Of the three-quarters of consumers concerned about security, identity and phone theft are the most pressing concerns
Base: Those who are worried about security ● Q16: You mentioned security concerns, which of the following concern you? Select the top 3.
People fear theft of information and the physical loss of their phone would compromise security
Include messaging
around protecting
against identity
theft
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Driving Adoption: Appeal & Opportunities Successful mobile wallet providers will need to overcome unfamiliarity and fear of new technology, all while offering a clear advantage over more traditional payment methods. Opportunities to drive adoption and appeal lie in:
• Overcoming security concerns
• Leveraging location-based services
• Offering rewards and incentives
consumerpulse
24%
25%
27%
28%
46%
42%
43%
40%
43%
33%
66%
68%
67%
71%
79%
Require a PIN to complete the transaction
Have your mobile wallet company monitor your account forunusual transactions and alert you immediately
Have the ability to wipe mobile wallet related data remotely ifyour phone is lost
Have advanced identity management software for yoursmartphone
Have 100% protection against fraud and theft
Increase in likelihood to adopt a mobile wallet…
Much more likely Somewhat more likely
For the security-conscious, many would be more likely to adopt if they had 100% protection against fraud and theft
Base: Those who have knowledge of mobile wallet, have not used a mobile wallet and do not plan to in next 6 months and are worried about security ● Q17: How much more likely will you be to adopt or continue to use a mobile wallet in the next 6 months if you…?
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How secure do
your consumers
feel?
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12%
13%
23%
30%
32%
34%
40%
45%
47%
46%
46%
53%
68%
77%
78%
Get discounts and deals by joining with otherpeople nearby seeking the same product
Get recommendations for similar products whileshopping
Receive offers and promotions based on whereyou are
Compare prices with online and nearbymerchants when shopping
Check if the products you seek are available inspecific stores nearby (Showrooming)
Increase in likelihood to adopt a mobile wallet if…
Much more likely Somewhat more likely
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Information gathering features, like “showrooming,” are the most attractive location-based services for mobile wallet users who don’t currently plan to adopt
Base: Those who have knowledge of mobile wallet, and have not used a mobile wallet and do not plan to in next 6 months ● Q25b: How likely would you be to adopt a mobile wallet if you could…?
Push offers and recommendations don’t hold the same appeal as the ability to check pricing
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Location-based services like Foursquare hold appeal, but consumers cite major concerns over privacy and receiving too many alerts
Base: All Respondents ● Q25: Thinking about location-based services, how concerned are you about location-based services impact on the following?
Concern over impact of location-based services
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My privacy Receive too many alerts Battery life of my phone
73% 59% 59%
consumerpulse
15%
20%
24%
34%
52%
55%
42%
46%
67%
75%
66%
80%
Rewards and points chosen byyour mobile wallet provider
Customized rewards and pointsbased on your past purchases
The same rewards and points asyour credit/debit card
Extra rewards and points inaddition to those you get with
your credit/debit card
Increase in likelihood to adopt a mobile wallet if…
Much more likely Somewhat more likely
At a minimum, getting the same rewards as they get with their credit cards is enough to increase likelihood to adopt for most consumers
Base: Those who have not waved or tapped mobile phone in past 6 months to pay for a purchase and do not plan to in the next 6 months ● Q28: How likely would you be to use a mobile wallet if you could get…? 10
Extra rewards help
people see the benefit of mobile wallets
over traditional payment methods
Designing the Perfect Wallet: Preferred Providers Credit card companies, tech giants, mobile phone providers, banks, and others are all staking their claims in mobile wallet, but what features matter most and who do consumers trust and expect to deliver the best experience?
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Wallet features like loyalty card management increase likelihood to adopt a mobile wallet, but too many alerts and “tips” drive adoption down
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Transaction based coupons, tips and suggestions may have a negative impact on mobile wallet adoption
19% 25% 27% 20%
37% 43% 46%
40%
56%
68% 73%
60%
#1 Perform transactions at thepoint of purchase instead of using a
credit/debit card
#2 All the features of #1 PLUS:The ability to store your loyalty
cards and other store cards
#3 All the features of #2 PLUS:The ability to store other items
you have in your wallet(insurance cards, license,
gym card etc.)
#4 All the features of #3 PLUS:Get tips, suggestions and couponsbased on your transaction history
Somewhatlikely to adopt
Extremelylikely to adopt
BASELINE WINNER
The winning combination of mobile wallet features that drives the
highest adoption
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Attribute Preferred Provider
Security Banks
Convenience Credit Card Companies
Wallet Features 3rd Party Discount Providers
Ease of Use Credit Card Companies & Tech Giants
Banks inspire trust, particularly among the security conscious, but credit card companies and tech giants hold the advantage for convenience and usability
Base: All Respondents ● Q30: Which of these categories of companies do you believe will deliver the best service when it comes to the following aspects? 13
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Many have an initial preference for credit card companies and banks, but one-third believe mobile service providers can provide good overall service
Base: All Respondents ● Q29: Which of the following categories of companies would you prefer to provide you with a mobile wallet service?
5%
10%
29%
31%
34%
58%
58%
Other
3rd Party Discount Companies (Level-up,Groupon, etc.)
Technology Giants (Google, Amazon, Cisco, etc.)
PayPal
Mobile Service Providers (AT&T, Verizon, etc.)
Banks
Credit Card Companies
Preferred Mobile Wallet Provider
14
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Amazon and Google—who many already trust with payments—top the list of tech giants consumers trust for their mobile wallet needs
72% 68%
61%
47%
5% 2%
Most Trusted Tech Giant
Base: Those who prefer technology giant to provide mobile wallet ● Q29a: Which of the following large technology companies do you trust to provide a mobile wallet? consumerpulse 15
Other
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Key Takeaways
Although just half of smartphone owners are familiar with the mobile wallet concept , nearly one-quarter of those who are familiar express interest in adopting the technology in the near future—Mobile wallet technologies are relatively new to the average consumer and there is still significant resistance to adopting a mobile wallet. However, incentives, including loyalty/rewards points, are especially attractive to consumers who may need to be convinced of mobile wallet’s superiority over credit and debit cards.
Mobile wallet providers who are willing to offer fraud and theft protection are well positioned to drive adoption among security-conscious mainstream consumers—Concerns over security remain a significant barrier to adoption, but the promise of 100% fraud protection significantly allays these fears , driving willingness to adopt. The security-conscious are most likely to choose banks as their preferred provider. Banks are well positioned to leverage their reputations as trusted institutions for less adventurous consumers.
Consumers find the benefits of location-based services appealing but privacy, and battery life remain concerns—Much touted location-based services are attractive to many potential mobile wallet users, particularly “showrooming” and other features allowing price comparisons. However, too many alerts and offers are seen as particularly unattractive, a feature allowing the user to limit the number and kinds of offers they receive could be a powerful incentive to adopt.
While banks and credit card companies are the clear choice for the security-conscious, opportunities exist for other providers—Convenience, cool features, and usability are compelling attributes for many current and prospective users, people who value convenience trust credit card companies, while the more feature-conscious prefer tech giants like Amazon and Google (who many already trust with payments) to provide their mobile wallet.
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About this study
• Independent Research: Conducted through the CMB Consumer Pulse
• Data collected from 1,479 smartphone owners, age 18+ in the United States through panel company, Research Now
• The online sample is weighted to reflect US Census age and gender distributions
• Data was collected through a 15 minute online questionnaire in January 2013
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consumerpulse
About Chadwick Martin Bailey
• Chadwick Martin Bailey (CMB), a Honomichl Top 50 Research Firm, is a custom market research firm working with many of the most successful companies in the world to help them acquire, maintain, and grow their customer base.
• Founded in 1984 in Boston, the company serves clients in more than 30 countries around the globe.
• Chadwick Martin Bailey focuses on using leading-edge research techniques to collect and translate data into simple, business decision-focused deliverables.
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SVP, Financial Services Practice Leader
Email: [email protected]
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Marketing Manager
Email: [email protected]
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