M-payments - Europeans are the least interested because of privacy and security concerns

[mobile europe] European users are amongst the most cautious when it comes to expressing interest in mobile payments technology, according to research from Accenture.

Accenture surveyed early adopters (who use at least four Internet-connected devices and at least four Internet services) in 11 countries. Overall it found that nearly half (45 percent) of the most active mobile device users would welcome the opportunity to pay for goods and services using their mobile phone, but in Europe that number fell to 26%.

Consumers in Asia were the most enthusiastic about mobile commerce. Overall, 69 percent of survey respondents in Asia indicated they favored using mobile phones for most payments, led by Chinese consumers (76 percent) and India (75 percent), followed by Korea (56 percent) and Japan (47 percent). Outside of Asia, the next highest positive response was in Brazil, where 70 percent of consumers favored using mobile phones for most payments.

When survey participants were asked if they had used a mobile phone to make purchases in the past six months, nearly half (47 percent) of tech forward consumers in China indicated they had, followed by Korea (42 percent) and Japan (33 percent). Depending on the geographic region, tech forwards are also in the early stages of using barcode or near field communications (NFC) technology to interact with their shopping environment. In Asia, 38 percent of consumers surveyed had scanned a product’s barcode while shopping to get additional information; 36 percent had displayed a “digital ticket” for admission to an event or to board a flight; and, 31 percent had purchased an item or received a coupon from a “smart poster” containing an electronic tag or barcode.

A majority (64 percent) of consumers surveyed indicated they would use gift cards and coupons delivered directly to their mobile phones, led by Chinese respondents (94 percent) Korean respondents (91 percent) and Indian respondents (76 percent). Globally, 79 percent of the consumers surveyed indicated they would redeem those coupons when checking out of a store, compared with 77 percent who said they would use coupons that had to be clipped from magazines.

Asked what they would do if they received a coupon on their mobile phone for the equivalent of a US$10 gift card (expressed in the local currency) for a store where they do not usually shop:
77 percent of all respondents indicated they would redeem the coupon at the store that issued the card account;
68 percent would exchange the card for $7 in mobile voice minutes or reduced phone charges; and,
67 percent would exchange it for a $7 gift card for use in a store where they usually shop.
Fraud and privacy concerns

Nearly three-quarters (73 percent) of the global respondents indicated that using a mobile phone for payments makes them worry about their privacy. Seventy percent said that mobile phone payments increase the risk of identity theft and fraud.

Regardless of these concerns, 62 percent of consumers surveyed who typically use a credit card for non-telco-related monthly payments said they would use their mobile phone to pay their bill, if they were to receive a 20 percent discount. More than half (59 percent) said they would welcome receiving money-off promotions based on their past purchases. Forty-seven percent said they would welcome receiving personalized mobile phone ads when they are within a few steps of the promoted product or service. And, 69 percent indicated they would gladly accept mobile phone ads sent to their phones as part of their service contract in exchange for lower mobile phone usage fees.

When asked what types of companies would play a significant role in enabling consumers to make payments or process coupons by mobile phone, most respondents (59 percent) thought that role would fall to credit card companies, followed by wireless operators (54 percent), software companies (52 percent), large retailers (52 percent) and device makers (48 percent).

“Mobile commerce – which encompasses mobile banking, such as checking balances or paying bills over a mobile phone, plus coupons, promotions, redeemable gift cards, loyalty points, and more – is poised to drive huge changes in the way we shop and pay for goods and services,” said Andy Zimmerman, director, mobility services, Accenture. “We can expect a convergence of traditional and alternative currencies, and it has huge implications on the entire in-store retail experience.

"While the survey indicates there are issues to address in terms of privacy and security, these findings are good news for mobile network operators because consumers have requirements they look to operators, technology vendors, or financial institutions to address.”



European mobile users least interested in mobile payments