THE DIGITAL WALLET CONSUMER PERSPECTIVE

Transcription

1 THE DIGITAL WALLET CONSUMER PERSPECTIVE 1

2 CHANGING LANDSCAPE. World is ever more digital and its impacting Financial Sector more than ever Ipsos.

3 Blurring lines..non traditional entrants & new financial models Ipsos.

4 Eco system.. Spanned across sectors Keys 06:30 MRT Card Ipsos.

5 Evolving in a Competitive Landscape 440 Million users. $720 billion in transactions in 2017 Source :Gartner Nature of transactions Low to Mid value. Payment for Retail & Transportation Millennial As an age group use mobile payments more than others. Less concerned about sharing their personal information Ipsos.

6 Adaptation Staying ahead of the curve Ipsos. Whoever s wallet that wins market, will own the customer data. Opportunities : Reaching out to Unbanked and Under banked. More number/frequency of transactions. Moving Cashless. Customer and product personalization, Opening up larger credit lines for SMEs and retailers. Threats : What if an ecommerce /telecom player get a financial license? Opportunities : Micro payments (Smaller value transactions, With out losing to cards) Targeted and customized promotions (Leveraging customer data). Better integration with vendors in downstream. Operational Efficiency ( Less queue time, lesser number of terminals) Mobile POS & Pay on the go (Pizza Express) Challenge : Cost of infrastructure and adaptability to multiple mode of transactions.

7 CONSUMERATTITUDE Nobody s going to adopt anything that s not going to solve a problem in an existing way. Right now, everybody s looking at technology and not what it s doing to make my life better. It should be about technology to make the consumer s life easier PayPal Ipsos.

8 A Global Segmentation.. GLOBAL SURVEY 24 Countries. 16, 976 Adult mobile users. Ipsos online panel survey. An attitudinal segmentation developed from mobile payment Study covering UK, Canada, China, Russia, Czech Republic. Expanded and calibrated to cover 24 countries across Americas, APAC, Europe, MiddleEastandAfricainH The survey instrument is conducted monthly in 24 countries around the world via the Ipsos Online Panel system. The countries reporting here in are Argentina, Austria, Belgium, Brazil Canada China, France, UK, Germany Hungary India Italy Japan Mexico Poland, Romania, Russia Saudi Arabia South Africa South Korea Spain Sweden Turkey and USA. REGIONAL SURVEY 5 Countries. 2,588 Adult mobile users. Ipsos online panel survey. A regional survey Replicating the approach and structure of the global survey.surveywas conductedamong16to 54 yearoldfrom 5 regional countries (Malaysia, Singapore, Indonesia, Thailand and Hong Kong) during H countries are purposively selected as they are in different stages of development and adoption of payment gate ways. Developed with predominantly non cash (SG & HK), Almost there (MY & TH) and starting phase of development (Indonesia). This is only snapshot and highlights from these surveys Ipsos.

9 Key dimensions for your consumers Understanding and awareness knowing who will provide mobile payments, the types of services and where to use such services, and what are the benefits. Payment security expectations on payment security and guarding against fraud. Technical support expectations of provision of support by payments service providers. Willingness and intentions intent to use mobile payments as soon as they are available, including modifying or upgrading a mobile phone to use such services Scepticism issues with effort and lack of security with mobile payments and requirement that such services be more established to facilitate adoption Ipsos.

10 Dimensions to segments CONFIDENT OPEN DISENGAGED CAUTIOUS Consumers who feel that they have a relatively good understanding and awareness about mobile payments and are more willing to use such services. Consumers who have a relatively positive intention to use mobile payments but lack the understanding and knowledge about such services Consumers who are unlikely to use mobile payments and who have relatively low interest overall. Consumers who are concerned about effort and security, awaiting for mobile payments to become more commonplace before using such services. Age : 16 to 45 Yrs. Income : Mid to High income Education : University + Age : Young (Below 30 Yrs.) Income : Across Income groups Education : University + Age : Middle and Above (40+) Income : Low to middle income. Education : Across Age : Middle and Above (40+) Income : Low to middle income. Education : Across Heavy Social Media Usage. Heavy Social Media Usage. Traditional Mediums Both Traditional & Social mediums Ipsos.

11 Confident.. High growth & Emerging markets C A U K S W RU U S SP IT TU CH SK ME KSA IN TH MY BR ID S G A U SA AR Ipsos. 10% or Less 11% to 25% 26% to 40% 40% and More

12 Open : Opportunities in developed markets US CA UK SP F A SW G E IT TU RU CH SK JP ME KSA IN HK TH MY BR ID SG AU SA AR Ipsos. 10% or Less 11% to 25% 26% to 40% 40% and More

13 Disengaged: Sizeable segments in Japan and Western Europe C A S W FR GE U S SP IT SK JA M E KSA B R A R Ipsos. 10% or Less 11% to 25% 26% to 40% 40% and More

14 Cautious : More convincing needed in established markets CA UK SW R U GE FR US SP IT TU M E HK T H ID M Y S G S A AU A R Ipsos. 10% or Less 11% to 25% 26% to 40% 40% and More

15 ADOPTIONBARRIERS We believe a combination of factors part structural, part user experience will drive the next and larger cycle in digital wallet adoption Ipsos.

16 Adoption Barriers & Motivators Trust in Financial System Security of Personal Data Technical Infrastructure Phone Compatibility Transaction Fees Savings & Personal Finance Management Retail Vendor Selection & Coverage Ipsos. Motivators: Market forces that encourage adoption. Barriers : Market forces that discourage adoption.

17 Way forward to encourage usage.. Prioritize Communicate Socialize Supportive Diagnose Service Providers should priorities what they want to achieve from each segment and whom to partner to reach that segment. There is a knowledge gap for many consumers, and they need to be updated on the benefits than features. We need to create a context where mobile payments are seen as established and normal. There needs to be a constructive eco system between entities to support the consumer Nobody knows your customer better than you. Better understand the needs and behaviors of end consumers Ipsos.

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