E-commerce, second screening and social media are the biggest potential areas in developed markets for m-payments, according to the 2015 Global Mobile Money report published by the MEF.
The report, based on a study of 15,000 mobile media users across 15 countries, shows that e-commerce via mobile is gaining traction, particularly in mature markets, with 43% of those surveyed having bought a product on their mobile either by using a credit or debit card, an online payment service or a retailer’s branded scheme.
In the US, 29% have inputted debit or credit card information into their device to make a payment versus the global average of 18%. In the UK, 15% have used a retailer’s online payment service – the global average is just 9%.
By contrast, the study found that uptake of proximity payments was still in its infancy. Only 20% have used a mobile wallet, plug & pay device or mobile loyalty scheme which shows consumers are not yet convinced by mobile wallets. A third of people either haven’t heard of them (18%) or don’t see the point (15%).
Social media emerges as a key opportunity for mobile payments, especially in growth markets where feature phones are still dominant. A quarter (25%) of feature phone users say that a social media page is their number one destination for mobile commerce ahead of 15% of smartphone users.
Second screening is also having an impact. Of the 94% of mobile media users who use another form of media while browsing on their phones, 14% said they use their mobile device for ‘shopping or commerce’ whilst 32% say they search for information about the content they’re engaging with.
Mobile banking continues to engage consumers – especially in mobile first markets. 69% of mobile media users globally carried out a banking activity via mobile in 2015, up 3% year-on-year; In Indonesia the figure was 80%, in Nigeria 85% and Kenya an incredible 93%.
However, trust – or rather a lack of it – remains the single largest obstacle to growth. 34% of people named it as the reason why they don’t carry out more transactions on their phone – far outweighing other concerns like bandwidth and network speed. This increases to 36% when it comes to mobile wallets.