environics webinar is canada ready for mobile wallet.pptx
DESCRIPTION
Mobile wallet technology is here, but are Canadians eager to adopt this new platform? Join the team at Environics Research Group for an in-depth look at consumer perceptions of new mobile payment solutions, and learn how to leverage insights from our multi-modal digital research. John Crockett, Vice President – Digital Innovation & Data Management will demonstrate how triangulating consumer opinion through social media monitoring, quantitative surveys, and online qualitative research activities can deliver richer, clearer answers to your market research questions.TRANSCRIPT
Is Canada Ready for
Mobile Wallet?
Environics Research Group
Tuesday November 20th , 2012
Industry Players are ready, are we?
Familiarity with Mobile Wallet is Low …
12%
3%
7%
25%
14%
19%
17%
19%
17%
47%
63%
57%
Smart PhoneUsers
Feature PhoneUsers
Total (n=1004)
Familiarity with the concept of Mobile Wallet
Very Familiar Somewhat Familiar Somewhat Unfamiliar Not at all Familiar
A1: How familiar are you with the term ‘mobile wallet”? n=1004
Appetite for Adoption Varies
19% 15% 21%
33%
22%
40%
26% 35%
21%
10%
16%
5%
Total(n=1,004)
36%----
12%
Smart Phone(n=516)
51%----
11%
Feature Phone(n=591)
26%----
13%
1. If mobile wallet technology was available today, how likely would you be to use it to make purchases at retail stores?
Very likely
Somewhat likely
Not very likely
Not at all likely
TOP 2 BOX ------------------------ Unsure – Need More Information
Canadian Values And Technology
Enthusiasm for
Technology
• A favourable bias toward technology. A
tendency to be fascinated with the
possibilities offered by modern
technology; to believe that technology is
the best tool for facing today’s world,
one that helps us adapt and respond to
the demands of daily life.
• People who are strong on this trend
have great confidence that science and
technology can better their lives.
Female Gen Y
Female Boomers
Male Boomers
New Canadians
Male Gen Y
High Enthusiasm for Technology
Low Enthusiasm for Technology
Can-Asian Gen Y will act as an Influence
Spear for New Technology in Canada
44% 50%
54% 52%
62%
White Chinese South Asian ImmigrantChinese
Immigrant SouthAsian
I am excited by the possibilities presented by new technologies (Gen Y: 15 to 29)
Canadian Born Foreign Born
Mobile is Personal
If I forgot my phone at home, I'd be so lost …it is my watch so I would probably be
late for everything. I would constantly be wondering what I'm missing out on because I can't go on Facebook or check my email … I wouldn't be able to watch my
tv shows [at lunch]. I think I would skip the gym after work because I wouldn't have my phone to listen to music”
If I forgot my phone at home, I'd feel completely NAKED! … to be honest, if I realized before I was too far, I would likely go back home to get it.
If I forgot my cell phone and had to carry on my day I would be somewhat nervous
and apprehensive because of not knowing if someone was calling or texting me. I would find it hard to concentrate on my work.
I would like you pretend you forgot your mobile phone when you left the house this morning. Tell me a bit about what the day would be like for you?
Methodology Overview
• A quantitative survey of n=1004 Canadian Mobile phone
customers (September 24 – 28, 2012)
• Bulletin Board Focus Groups with smartphone owners
(November 3-4)
• Ongoing Social Media Listening
– Wireless CSAT Syndicated Offering (Twitter)
– Blog scraping
– Facebook/Twitter monitoring
Pulse measurement via monitoring
540
1162
941 788 785
515 656
754 746
Aug-30 Sep-04 Sep-09 Sep-14 Sep-19 Sep-24 Sep-29
Google announces it is canceling prepaid card
Discussion around absence of NFC in iPhone 5
Arrival of Nexus 7 reignites debate about Apple vs. Google and NFC adoption
Galaxy SIII Beacon SmartBoards?
Clear signals that Mobile Wallet is on the
minds of consumers
1943
1112
1476
May-13 Jun-17 Jul-22 Aug-26 Sep-30 Nov-04
Rogers & CIBC announce mobile wallet plans
Rogers & CIBC roll out mobile wallet offering
iPhone 5 data plans announced
Reactions to Rogers/CIBC in BBFG
“Whether you are the first or the fifth to launch a new program, giving your customers the access [to new features] is certainly beneficial. At the same time, it obviously isn't appealing when whichever company you are loyal to is consistently following trends and late to react in comparison …” - Male, 21 years old
“I am more inclined to use an app knowing that my personal information is being secured by an actual bank. I trust it solely because of the brand itself. In comparison to the Google wallet app, I would have to say I'm more likely to use the CIBC/Rogers app, the names make it seem more trustworthy.” - Female, 20 years old
“I do not know if I trust them as much as Google, or believe that they are as competent as Google in getting this off the ground without glitches.” - Male, 55 years old
6. So many of you saw the news last night that Rogers and CIBC have launched their own Mobile Payment system. How does this change your perception of these brands? Do you see them as leaders because they were the first ones out of the gate? Or are they taking a risk with their customers sensitive information? What are your thoughts about the Rogers/CIBC application compared to what you saw about the Google Wallet approach?
37%
18%
14% 12%
8% 6%
34%
19%
8% 9% 11%
5%
Companies Leading Implementation of Mobile Wallet Technology
Perceived
Ideal
Who Should Lead mCommerce?
A5:Based on what you have heard about mobile wallet technology, what company or companies do you believe are driving the implementation of this new technology in Canada? (excluding DK/NA n=1304) A6: Based on your understanding of mobile wallet technology what company or companies would you like to see drive mobile wallet implementation in Canada? (excluding DK/NA n=1101)
“I believe the banks will ensure security, the carriers and the others will make sure it works and is simple to use.”
So, Are We Ready?
21%
46%
34%
33%
42%
25%
24%
13%
22%
Still a ways to go! (4 years or more)
We'll be ready soon! (2-3 years)
We're Ready! (Now or next year)
Experts and Enthusiasts (n=50)
Feature phone users (n=591)
Smartphone users (n = 516)
When do you see this technology becoming commonplace?
Blogger Typology
Expert – not ready
Expert – Ready!
Laymen – not ready
Laymen – Ready!
Are Canadians Ready?
1. Yes, we’re ready!
2. No, we still have a ways to go!
3. We’ll be ready soon!
Are Canadians Ready for
Mobile Wallet?
We’re Ready!
Mobile Wallet is Already Here!
Yes, 5% No, 87%
Not sure, 8%
Q. Do you own a mobile wallet? n=1,004
…But Still Far Behind Other Markets
11%
40% 46%
Have used Smartphone for online purchases
Source - http://www.worldpay.com/globalshopper/mrc-report-shopper.pdf
Mobile Wallet ‘Light’ – QR Codes
Well.ca Virtual Store
“…another example of how
the line between store-based
and online retailing is
becoming increasingly less
defined. ”
Mobile Wallet ‘Light’ - Parking
“Mobile payments for parking meters means that
you can re-up your parking time from the
restaurant. You’ll be notified when your time is
running short. You’ll have an easier time
following the rules and in the long run everyone
will win.”
Mobile Wallet ‘Light’ –Transit Payments
“For transit agencies who don’t want
to issue their own fare cards,
moving to open payment reduces
the need to procure, encode,
distribute, and support literally
millions of magnetic tickets or
contactless smart cards.”
Are Canadians Ready for
Mobile Wallet?
We Still Have A Ways
to Go!
Security Concerns - Blogs
Expert - Canada is not ready
Significant security concerns with
software and hardware on phones.
Concern that people will throw their
phones away with critical security
information still in the SIM card.
“[NFC] certainly increases the risk
that something could go wrong.”
Enthusiast - Canada is not ready
Fear that people will be able to steal
money without any physical contact, by
having their phone chips scanned.
"As mobile payment systems are
increasingly gaining more momentum,
you may not want to stand too close to
Charlie Miller or other hackers of his
caliber."
"I think of the mobile wallet and NFC
technology which still has not taken off
because it just isn’t any better than a
credit card in the user experience."
Security Concerns Haven’t Been Addressed
49%
36%
5%
3%
2%
2%
1%
1%
1%
Security of credit/debit card information
Security of transactions
Ease of Use
Integration with my financial institution
Availability of merchant locations to use this technology
A single application to hold all accounts, "one wallet" concept
Compatibility with different brands of smartphone
Transferability of my "mobile wallet" to other devices
Capability of logging into different "mobile wallet" accounts
Most important feature for mobile payment app (n= 1,004)
Q3A Pretend for a moment that this new technology was available to you via your mobile phone. How important would each of the following features/functions be when considering whether or not you would use it?
Overcoming Security Concerns - BBFG
I would definitely need assurances from the credit card companies and mobile wallet that transactions are legitimately tracked and the owner is the only one able to use it. - Male, 29 years old I would be slightly concerned but I currently have the BMO mobile app which I use on a regular basis. Piece of mind comes from a BMO disclaimer about righting any wrong that occurs while using internet banking. I think i would wait a while before I started using this app just to wait until they have worked out all the kinks. - Female, 31 years old “they [could] limit the credit ceiling for mobile apps to a significantly lower amount [than what you could do with your card]. It would also help if there was extra security protocol other than pin numbers. - Female, 22 years old
Overcoming Security Concerns - BBFG
There is always concern for theft, especially involving items of high value. Obviously I would be more concerned about a $200 boarding pass than a $2 coupon for coffee or something, but its nice to know that even that $2 coupon is relatively secured within the app you're using … it would be unnerving having multiple people you may not know, knowing you and your personal information. - Male 21 years old I'm personally not overly concerned with mobile wallet. Been using online payment services such as PayPal, EMT, and phone apps before without issues so I'm sure the providers would address all the issues of security before launching such a service…People used to be skeptical about online banking and such, but it's now just common practice. - Male, 32 years old
How to overcome security concerns?
22%
1%
30%
36%
45%
47%
67%
Nothing
If a financial incentive is offered/if it's free
If most, or all of the vendors that I currently have a ‘plastic’ card with migrate to mobile
If most, or all merchants offered this technology to be used at their location
If the government created laws or standards onsecurity in using mobile wallet technology
Offered by a vendor orfinancial institution that I trust
Fraud protection or zero liability
Ways to encourage mobile wallet use (n= 1,004)
Q4 Which of the following would encourage you to use this technology, if any?
Experts – Overcoming security concern
If they want to speed adoption of mobile wallets, they´re going to have to demonstrate users´ security concerns have been addressed. Prove that …
– man in the middle attacks can’t happen
– when my phone is lost or stolen that there is a procedure in place to prevent me being stuck paying charges (zero liability)
– when I walk by someone in the midst of a transaction, that my phone won’t be the one that pays for the other person’s goods
– when the merchant retailer´s mobile wallet technology doesn´t accept my phone, that I won´t have to leave empty handed. That´d be especially problematic (and embarrassing) in a restaurant, for example.
- Dave Chappell, IT/Security Blogger http://securebuzz.ca
Are Canadians Ready for
Mobile Wallet?
We’ll Be Ready Soon!
When does mCommerce go mainstream?
“Mobile wallet payments have to offer significant
advantages over cash, credit card, or debit card in order to
be accepted. This could be point programs or emailed
receipts or actually making the checkout process faster.”
- Greg Lam, Small Business Blogger
http://www.smallbusinessdoer.com/
Loyalty Cards and Coupons are the key to
driving adoption
23%
20%
6%
18%
28%
28%
29%
32%
34%
45%
None of the above
All of the above
Prepaid VISA
Boarding Passes
Membership Cards
Gift Cards
Banking/DEBIT Cards
VISA/Mastercard/…
Coupons
Loyalty Reward Cards…
TOTAL (n= 1004)
Q6 Say you had the following cards in your physical wallet. Which, if any would you ‘migrate’ over to your mobile wallet (meaning you would have it on your smartphone in addition to a physical card)?
“I'm less concerned about the left of my loyalty cards, coupons, etc because most don't have threatening information loaded to them.” - Female, 27 years old
“ Anyone can find out your address by looking you up on Canada 411 and if you have a Facebook account your personal life is out there. So no I'm not concerned about theft of my personal information.” - Female, 53 years old
When does mCommerce Go Mainstream?
• When consumers understand added value
• added efficiency
• new opportunities (mobile only offers)
• Lessons learned from QR codes
• Biggest opportunities with routine behaviours
such as transportation/parking, QSR, everyday
activities
Methodological Learning
• Be Flexible
• Be Specific
• Be Open-minded
• Explore – Test – Confirm – Monitor
Thank You! Questions?
John Crockett, CMRP
Vice President, Digital Innovation & Data Management