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Mobile Payments: Emerging Trends and Future Outlook

Mobile Payments: Emerging Trends and Future Outlook

Synopsis

Mobile Payments: Emerging Trends and Future Outlook is a new report by Timetric that globally analyzes consumer perceptions of mobile payments, including the share of payments conducted through mobile phones, satisfaction levels for mobile phone transactions, and key aspects affecting growth in use of mobile payments. This report also highlights projected changes in payments through mobile phones until mid-2015, concerns about payments through mobile phones, frequently purchased product categories, and expected security features from mobile payment service providers.

Summary

  • The report examines the extent of mobile phone use for payment transactions
  • The report analyzes the percentage changes expected in payments through mobile phones until mid-2015
  • The report identifies major factors influencing increased use of mobile payments by customers
  • The report determines the key reasons behind the growth in the use and acceptance of mobile payments
  • The report identifies the preferred products associated with mobile payments
  • The report ascertains the satisfaction levels of consumers for specific mobile transactions
  • The report highlights respondents concerns over payments through mobile phones
  • The report identifies the security features anticipated by customers from mobile payment service providers
Scope

The report features the opinions of industry respondents about trends in mobile payments, covering the following aspects:
  • Mobile phone payment transaction status
  • Projected changes in payments through mobile phones over the next six months
  • Key aspects affecting growth in use of mobile payments
  • Key drivers for payments through mobile phones
  • Frequently purchased product categories through mobile phones
  • Satisfaction levels for mobile phone transactions
  • Concerns over payments through mobile phones
  • Expected security features from mobile payment service providers
Reasons To Buy
  • The report identifies the extent of mobile payments transactions, allowing organizations to plan strategy about mobile payment platforms.
  • The report helps readers to take strategic decisions by analyzing projected changes in payments through mobile phones over the next six months.
  • Companies will be provided information about frequently purchased product categories through mobile phones. This will help organizations to devise effective sales and marketing strategies.
  • The report highlights security features which customers expect from mobile payment service providers. This will help organizations to strengthen security framework and improve customer satisfaction.
  • The report ascertains satisfaction level of customers for specific transactions conducted by mobile phone. This will help organizations to improve service offerings by understand customers’ opinions about services offered.
Key Highlights
  • The majority of respondents use mobile phones for payment transactions.
  • 31% of customers anticipate an increase of 5–25% in payments through mobile phones over the next six months.
  • Discounts and fee reductions will encourage customers to increase use of mobile payments.
  • Regardless of age group, customers view time and cost saving, and ease of use as the key drivers for payments through mobile phones.
  • The highest percentage of survey respondents from North America purchase music, video and entertainment products through mobile phones.
  • Male and female respondents are not concerned about lack of knowledge about mobile payments while making payments through mobile phones.


  • METHODOLOGY AND SAMPLE SIZE
    • PROFILE OF RESPONDENTS
  • Extent of mobile phone usage for payment transactions
    • The majority of respondents use mobile phones for payment transactions
  • Percentage of total payment transactions through mobile phones
    • In total, 47% of customers conducted less than 10% of their total payments through mobile phones over the last six months
    • The highest percentage of male and female respondents noted that less than 5% of their total payments were made using mobile phones
    • Customers aged under 25 years made more payments through mobile phones compared to customers aged more than 25 years
    • The majority of respondents with income of US$40,001-US$60,000 paid less than 10% of overall payments through mobile phones
  • Projected change in payments through mobile phones over the next six months
    • In total, 31% of customers anticipate an increase of 5-25% in payments through mobile phones over the next six months
    • The highest percentage of respondents aged between 55-64 years foresee no change in payments conducted through mobile phones
    • A higher percentage of male respondents project an increase in payments through mobile phones as compared to female respondents
    • 44% of respondents with income between US$60,001-US$80,000 project an increase of more than 10% in payments made using mobile phones
    • The highest percentage of respondents across regions anticipate no change in payments made through mobile phones over the next six months
  • Frequency of overseas payments through mobile phones
    • The majority of customers do not make any overseas payments using mobile phones on a monthly basis
    • Overall, 32% of respondents aged 25-40 years noted that they use mobile phones 1-3 times monthly to make overseas payments
    • Female customers make less use of mobile phones than male customers for overseas payments
    • The majority of customers with income less than US$20,000 do not use mobile phones for overseas payments every month
    • In total, 30% of European respondents noted that they use mobile phones 1-3 times per month to make overseas payments
  • Factors influencing the increased use of mobile payments by customers
    • Discounts and fee reductions will encourage customers to increase use of mobile payments
    • Customers aged 25-40 years are more influenced by discounts to make mobile payments than older customers
    • Female customers are more encouraged than male customers by offers and rewards for transactions through mobile phones
    • 52% of respondents with income between US$60,001-US$80,000 expect rewards to influence customers to increase the use of mobile payments
      • Table Which of these will influence customers to increase use of mobile payments? (Analysis of top four responses by region)
    • The majority of customers across regions expect discounts and fee reductions to encourage payment transactions through mobile phones
  • Key drivers for payments through mobile phones
    • Ease of use is propelling mobile payments
    • Regardless of age group, customers view time saving, cost saving, and ease of use as the key drivers for payments through mobile phones
      • Table According to you, which of these are key drivers for payments through mobile phones? (Analysis of responses by gender)
    • Round-the-clock access is a more significant driver for female respondents than male respondents for mobile payments
    • 61% of customers with income less than US$20,000 prefer payments through mobile phones due to the cashless nature of the transactions
      • Table According to you, which of these are key drivers for payments through mobile phones? (Analysis of top four drivers by region)
    • Regardless of region, payments using mobile phones are driven by ease of use, and time and cost saving
  • Frequently purchased product categories through mobile phones
    • Music and video, and consumer electronics are most purchased through mobile phones
    • The highest percentage of respondents aged 25-40 years buy electrical and electronics products using mobile phones
    • Use of mobile phones to buy food, beverage and tobacco products is more prominent among female than male customers
    • The majority of respondents with income between US$60,001-US$80,000 indicated purchasing book, news and stationery products using mobile phones
      • Table Please select the top three product categories which are generally purchased through mobile phones? (Analysis of responses by region)
    • More customers from Asia-Pacific buy apparel, accessories and luxury goods using mobile phones as compared to customers from Europe
  • Satisfaction regarding mobile phone transactions
    • Customers are most satisfied while making bill payments and online shopping through mobile phones
    • The majority of respondents aged 25-54 years are satisfied while conducting fund transfers using mobile phones
      • Table Please rate your satisfaction levels for the following transactions conducted through your mobile phone? (Analysis of responses by gender who are `very satisfied' and `somewhat satisfied')
    • Male customers are more satisfied than female customers while making bill payment transactions through mobile phones
    • The highest percentage of respondents with income more than US$60,000 expressed satisfaction while conducting bill payments using mobile phones
    • Customers from the Rest of the World are more satisfied than customers from other regions while shopping through mobile phones
  • Concerns regarding mobile payment transactions
    • Respondents are concerned about fraud and privacy issues while making payments through mobile phones
    • The highest percentage of customers aged above 41 years are apprehensive about fraud when paying via mobile transactions
      • Table How concerned are you about the following while you make payments through mobile phones? (Analysis of responses by gender who are `concerned' and `very concerned')
    • Male and female respondents were less concerned about lack of knowledge about mobile payments while making mobile transactions
    • The majority of customers with incomes less than US$60,000 were concerned about bank charges associated with mobile payments
      • Table How concerned are you about the following while you make payments through mobile phones? (Analysis of top four responses by region who are `concerned' and `very concerned')
    • Respondents from Asia-Pacific were more worried about privacy issues than respondents from other regions regarding mobile transactions
  • Expected security features from mobile payment service providers
    • Customers expect mobile service providers to provide an app that issues an immediate electronic receipt as a security feature
    • Overall, 84% of respondents aged 55-64 years expect mobile payment service providers to provide a PIN for each transaction
      • Table What are the security features that you expect from the mobile payment service providers? (Analysis of responses by gender)
    • Two-factor authentication is more preferred as a security feature by female respondents than male respondents
    • 77% of customers with income between US$40,001-US$60,000 expect mobile payment service providers to provide alerts for every transaction
      • Table What are the security features that you expect from the mobile payment service providers? (Analysis of top three responses by region)
    • Alerts for every transaction are favored more by respondents from the Rest of the World than respondents from other regions
  • Appendix

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