Dear Readers,
Growing smartphone ownership is driving the mobile payments revolution in the UK. 60% of UK consumers now own a smartphone and are using them as payment devices on the move. At least that's what a new report from international payments provider VocaLink revealed last week, after surveying over 10,000 adults in one of the UK's largest research programmes into mobile banking and payments usage and behaviour.
According to the report, mobile banking and payments in the UK are growing, with half the population either already using mobile payments (20%) or interested in doing so (30%). Younger adults are especially likely to be mobile payment users (41% of 16 to 24 year olds) and around half of those who are not already using their smartphone to pay for goods and services are interested in doing so.
And yet, the report tells us that current mobile payment behaviour remains fragmented. Mobile payments are currently used on an ad-hoc basis in a range of situations, including sending money to friends and family (6%), paying for parking (5%) and purchasing groceries in supermarkets (3%).
The research reveals that there is not one solution which attracts more than 5% of current mobile payment users on a regular basis.
Vocalink's research suggests that it is banks who are ideally placed to be the trusted providers of a ubiquitous mobile payments service with 35% of respondents more likely to pay for items using their mobile phone if it was provided by their bank. 63% of people who already make some mobile payments agreed they would also trust their banks to provide this service. Sorry, network operators.
Finally, 30% of respondents said they would use mobile payments and interact with their bank more often if this offering was available. Apparently, such a bank-provided mobile app would also have another another distinct advantage; it would give bank customers the ability to see their balance on screen at point of payment and make informed choices about whether to pay for goods or services and from which account.
"The prolific growth in smartphone ownership and app usage, combined with an already established mobile banking market and the availability of Faster Payments, means we are entering a perfect storm for mobile commerce. Our research confirms there is prevailing consumer trust in the banks to provide this service," said Paul Stoddart, Managing Director Strategy & Business Development at VocaLink. "Given convenience is the overwhelming driver for widespread adoption, it is crucial that banks work with stakeholders including retailers, billers and telecoms companies to create the necessary infrastructure for this service to really take off. The UK is now ready, willing and able to make mobile payments creating an exciting market opportunity for companies willing to collaborate to provide a ubiquitous and trusted solution," he added. You can download the full report here.
After Visa's release last month featuring encouraging figures, documenting the uptake of contactless payments, it comes as no surprise that a television advertisement was aired in 19 countries to highlight the ease and convenience of new payment technologies. It shows an old man’s journey to visit his new-born grandchild being made easier by using Visa’s services.
Mariano Dima, chief marketing officer at Visa Europe, told Marketing Week the campaign is an attempt to make contactless “meaningful for consumers” by demonstrating how it can make life easier. As regular readers of Contactless Intelligence know, Visa has been at the forefront of industry efforts to increase acceptance and take-up of contactless.
Without discounting some of the many successes the industry had seen concerning contactless payment acceptance by certain quarters, Marketing Week suggested that consumers’ concerns over security are holding back progress, specifically mobile payments using NFC technology. Dima dismissed the suggestion, saying that "Contactless has reached the “tipping point” in the UK and that critics are ignoring the real facts. We need to keep training, keep educating but consumers are using”.
Fair dues to Visa, though, payments using contactless technology numbered 5 million in the UK in March, up from 1 million in July 2012. Can't wait to see the TV advert!
Until next week.
Regards,
Steve Atkins
Contactless Intelligence
This week on C-ITV
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SMBs Get Smart About Mobile Payments http://bit.ly/10DKmvS
PayToo Sets the Mobile Wallet Rhythm in Jamaica http://prn.to/10DKPho
Lemon’s Mobile Wallet Gets More Useful With New Expense
Reporting Service; Support For Transactions Is Next http://tcrn.ch/10DKRG3
Google Checkout Being Retired, Transitioning to Google Wallet http://bit.ly/10DKThe
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Samsung puts NFC into hot desks http://bit.ly/17wEqJy
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MTS launches NFC payments in Belarus http://bit.ly/17wCm4h
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Mobile payments to benefit from new security solutions http://bit.ly/10DKOdi
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Samport rolls out Ingenico payment solutions to the Nordics http://bit.ly/12ZS3Mv
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Central Bank Of Brazil Will Oversee The Electronic Payment Market http://bit.ly/18m3mmx
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