mobileusageresearchfinal

Mobile usage: attitudes and payments research report 2013

VocaLink in association with

Mobile usage: attitudes and payments insight report 2013 1

Contents

2 Research objectives and methodology

3 Executive summary

4 A maturing smartphone market

6 Consumer mobile banking

8 Mobile banking – between convenience and security

11 Mobile payments – the customers

13 Mobile payments activity

17 Mobile payments – opportunities and obstacles

20 Mobile payments – the perfect storm

21 Mobile payments – key findings

About VocaLink

VocaLink designs, builds and operates world-class

payment systems and ATM switching platforms.

We operate the UK national payments infrastructure,

a national grid for payments.

Our innovative, sustainable, and highly efficient payment

services touch the lives of almost every person and

business in the UK.

Through our systems we process over 90% of UK

salaries, more than 70% of household bills and almost

all state benefits.

VocaLink technology powers the Bacs and Direct Debit

schemes as well as connecting the world’s busiest

network of over 65,000 ATMs through the LINK scheme.

Our platforms have made it easier to make payments

confidently, securely and cost effectively. Last year we

processed over 10 billion UK transactions with a value

of £4.9 trillion.

VocaLink commissioned robust quantitative research to

find out what the UK really want from a next generation

in payment services.

2 VocaLink mobile usage, attitudes and payments insight report 2013

VocaLink has completed one of

the largest pieces of research into

mobile usage* by asking more

than 10,000 adults across the UK

(16-65 year olds) about their habits

and behaviours. The research was

designed to understand usage of and attitudes to mobile

banking and payments in both general and specific

scenarios and to explore consumers’ views on the aspects

of trust, reliability and security.

Mobile phones are generally not used as mobile payment

devices; however, this is changing fast. The OFT Consumer

Surveys in 2008 and 2013 referenced in the Review of

Personal Current Accounts, January 2013, identified that

mobile banking use is growing rapidly. Even though there

was no significant m-banking in 2008, by mid-2012 some

17% of customers were using it. The VocaLink research

confirms that the UK is now ready, willing and able to

make mobile payments, but will there be a dominant,

ubiquitous solution and who will provide this service?

In VocaLink’s view, the implication is that banks are ideally

placed to be the trusted providers of the solution.

Despite the problems of recent years, consumers

overwhelmingly trust their banks: 35% of respondents

said they were more likely to pay for items using their

mobile phone if the service was provided by their bank,

and 63% of people who already make some mobile

payments would trust their banks to provide this service.

30% said they would use mobile payments and interact

with their bank more often if their bank was providing the

service.

The opportunity for an ubiquitous mobile payment

solution represents something of an open goal for the

banking industry: if the banks can leverage their trusted

status and offer a practical solution for mobile payments,

usage will increase, which in turn will create increased

loyalty to bank services, generate new revenues and

reduce banks’ costs to serve.

Finally, a bank-provided app means that consumers can

see their current account balance on screen and make

informed choices about whether to pay, and from which

account. Bank account access at the time of payment can

greatly enhance the customer’s ability to manage their

money, and reinforces the bank’s great strength over card

payment solutions and other non-bank alternative

providers such as m- and e-wallets.

Additionally, based on the insights provided by the

research, VocaLink believes that there are significant

commercial growth opportunities that can only be driven

through collaboration between stakeholders including

retailers, banks and telecommunications companies.

Given the extraordinarily rapid growth in ownership and

their use as app platforms, it is the personal nature of

our smartphones and the convenience and control they

offer, that will be the key to universal adoption as a

payment solution.

Paul Stoddart

Managing Director, Strategy and Business Development

* TNS survey, February 2013. 25-minute online survey of a nationally representative sample of 10,010 UK adults aged 16-65.

Mobile phones offer a convenient and secure option

for banking and payments in the consumer marketplace:

the potential for these services has only begun to be

exploited. This report presents the findings of an

independent market research programme to gain deeper

insights into UK consumer m-commerce behaviours,

attitudes and preferences.

VocaLink appointed TNS, the world’s leading customer

research company, to conduct one of the largest research

programmes currently existing in this field.

TNS conducted a 25 minute online survey among a

representative sample of 10,000 UK adults (16 to 65)

between 1 and 13 February 2013. The resulting data was

weighted by age, gender and region and smartphone/

mobile phone usage to match the profile of the UK’s adult

population. The research covers areas such as current and

future mobile behaviour, attitudes and mobile banking

and payments behaviour.

The main objectives of the study were:

• To provide quantitative insights into mobile phone /

smartphone usage and behaviours, and specifically

mobile banking and payments

• To benchmark consumer understanding, expectations

and current behaviours

• To construct a robust consumer driven matrix of

m-commerce priorities and future potential

• To identify key differences between each consumer

group.

Research objectives and methodology Executive summary

Alternative Payments proposition research 3

20%

of u

sers

mak

e mobile payments

Mobile usage: attitudes and payments insight report 2013 3

Mobile usage: attitudes and payments insight report 2013 5 4 Mobile usage: attitudes and payments insight report 2013

Smartphones have quickly become an everyday feature of

everyday life, with 60% of UK adults now owning one. This

means that the use of smartphones now extends well

beyond the younger early adopters – for example almost

half of 45-54 year olds own a smartphone.

The VocaLink study shows that smartphone users are

more likely to be men (52%) than women, and that a

majority (57%) of the 16-24 age group owns one. Overall,

70% of users are under the age of 45. They are also more

likely to own a tablet (31% versus 24% of the overall

population and only 12% of mobile phone users).

Ownership of smartphones is also very high among

“influencers” for this category – people who tend to be

early adopters of new technology and have strong and

active friendship networks.

By contrast, 60% of regular mobile phone owners are over

45 and a clear majority are women (55%).

As the market matures, the number of people who own or

have owned more than one smartphone is growing. Half

of all smartphone owners currently have their first device,

while nearly a third have owned two smartphones and

12% have owned three. Women are significantly more

likely than men to be still using their first smartphone.

Younger people are more likely to have the extra

experience with smartphones – fewer than half are still

using their first device.

The smartphone market is dominated by Samsung and

Apple, with shares of 30% and 25% respectively. HTC and

Blackberry have 13% each. Unlike Samsung, Nokia has not

yet translated its strong position in mobile phones into

smartphones: its handsets are owned by only 7% of

survey respondents.

Our 10,000 sample shows that O2 is the top single

network provider with 24% market share, although

Everything Everywhere is the biggest operator overall,

with its three constituent brands – EE, Orange and

T-mobile – taking 32% of the market. O2 has particular

strength among the 25-34 year olds (29%) and EE among

the 16-24 year olds (36%).

Interestingly, and despite a lingering perception that data

remains too expensive, 78% of smartphone users have a

data allowance, including 28% who subscribe to a

package with unlimited data. This contrasts with those

using regular mobile phones - most of whom have neither

a data allowance nor a pay-as-you use data bundle.

Adoption rates are still increasing rapidly – from 48% in

December 2011 to 60% in December 2012 – and as prices

are now far less of a deterrent to adoption, the

assumption is they will keep on increasing. Unsurprisingly,

this is key to the development of growing mobile banking

and payments markets.

A maturing smartphone market

EE = 32% of the UK market share

O2

Vodafone

Orange

EE

T-Mobile

Virgin Mobile

Three Mobile

Tesco Mobile

GiffGaff

Other

Mobile phone operator

24%2%

2%

17%

15%9%

9%

8%

7%

7%

48%female

52%male

16-24

25-34

35-44

45-54

55-65

24%

27%21%

12%

14%

Age range

Smartphone users

27%

use

smartphones for m

obile banking

“My smartphone fits into my life because I always carry my phone, and it is just a more efficient way of getting things done.”

“It fits into my life because I am always on the go”

50%

1 2 3 4 5 6+

31% 12% 4% 1% 2%

Number of smartphones ever owned


Consumer mobile banking

Mobile banking activities are strongly linked to

smartphone ownership. 27% of the UK population

declares some mobile banking activity, 43% of

smartphone users also bank from their device and

only 3% of regular mobile phones users bank this way.

Interestingly, an even higher proportion of tablet

users (50%) bank from their mobile device and 57%

of those who own both a smartphone and a tablet

use mobile banking.

Our data shows that mobile bankers are more mature

(both in profile and from the perspective of technology

usage) than the average smartphone users. The use of

mobile banking is highly concentrated among the under

45s (82%), however 55% of users are between the ages of

25 and 45. Just over half (55%) are men and a similar

number are also mobile payment users. Ownership of

tablets and smart TVs is nearly double the level among

mobile bankers as it is for the population as a whole, at

44% and 22% respectively. Banks should consider the

mobile channel to secure lifetime customer loyalty.

While there is no denying that mobile banking is on the

rise, especially among younger people, there is still much

to be done in persuading the millions of people who do

some of their banking via a PC or laptop that mobile can

play a part in their banking activity.

A narrow majority are already taking part in an array of

online banking activities: the most popular activity is

checking their account balances (60%). More than half

said they go online to access their account details, pay for

goods and services, view historic transactions and

transfer money to or from their own or another person’s

account. But the number of those carrying out these

activities via a mobile phone or a tablet remains relatively

small: the most popular is checking a bank balance – 20%

from a smartphone and 6% from a tablet.

Further analysis shows that once people migrate their

online banking activity from PC/laptop to mobile/tablet,

their online banking does not necessarily increase much,

if at all, if conducted via a browser.

However, for some banking activities the pace really does

increase when the mobile banking user accesses banking

services through an app rather than a browser. For

example, while the proportion of laptop/PC users

checking their bank balance daily is about the same as

those who do so via a mobile, there is a significant

increase in daily activity when an app is used on the

mobile. Proportions of mobile users for each type of

activity are very similar between browsers and apps so we

can conclude that one of the priorities for providers is to

convert browser users to apps users to increase the level

of activity. As apps are more specifically designed for

mobile devices, they should provide a better user

experience and in time, turn those users into advocates.

Similarly to the current account market, the banking app

market is very fragmented and is dominated by Barclays

(11%), Natwest (11%) and Lloyds (10%), followed by Halifax

(8%) and HSBC (6%). With only 27% of smartphone users

having downloaded a banking app on their device, there

is real potential for growth in the short to mid-term on the

mobile banking market.

As word of mouth is so important to adoption of new

technologies, it’s important to note that mobile bankers

have a very high measure of influence in the marketplace

– half of those in the VocaLink survey can be regarded as

influencers. This contrasts with 38% of all smartphone

users and 28% among the population as a whole.

This provides the industry with a great opportunity to

influence non-users to adopt new ways of banking. If they

can ensure that the experience they provide is positive,

they can expect their satisfied users to pass on their

positive impressions to others.

Mobile banking app provider – of those who have a mobile banking app

Barclays

Natwest

Lloyds Banking Group

Halifax

HSBC

Santander

Nationwide

PayPal

RBS

First Direct

Co-operative Bank

Amazon

Bank of Scotland

Clydesdale Bank

Tesco

American Express

11%

11%

10%

8%6%

4%

4%

4%

3%

3%

2%2%

2% 1%1%1%

SOURCE: Q25/Q20 Current bank and card providers

27%

33%

22%

7%9%

Mobile banking users

16-24

25-34

35-44

45-54

55-65

Age range

45%female

55%male

52%

prefe

r con

veni

ence of mobile payments


In order to unlock some of the potential in this market,

mobile banking providers will have to fully exploit and

raise awareness of the real benefits to users as well as

alleviate some of the fears and lack of understanding of

the non-users.

The VocaLink study gives strong pointers to what mobile

banking users perceive to be the main advantages of this

new approach to banking.

Inevitably, convenience is the main theme here. Speed

(66%) and saving time (60%) are the top factors, but also

ease of use (41%), a feeling of being more in control of

their banking (37%) and security (33%).

However, security, along with device limitations (i.e screen

size) and lack of trust in network reliability remain the

strongest barriers to mobile banking among those who

have never tried it. But first and foremost, nearly 4 in 10

non-users (39%) cannot see the appeal of such a service.

These concerns are less prevalent among influencers and

young adults (16 to 25 year olds).

Mobile banking – between convenience and security

66%

60%

59%

47%

41%

36%

36%

33%

31%

28%

21%

9%

8%

7%

4%

3%

It’s quick

It saves me time

I can do it anywhere/time

No queues

Easier than other methods

More control over banking

The apps are easy to use

It’s secure

Don’t have to fill out forms

Private and confidential

I like keeping up with technology

It’s what I have always done

Cheaper than other options

No upper transfer limits

The only option I have

None of the above

Male Female

Reasons why people like mobile banking

63%

52%

56%

45%

38%

33%

33%

34%

31%

27%

25%

9%

10%

8%

6%

4%

70%

67%

64%

50%

44%

41%

38%

33%

31%

29%

17%

8%

7%

5%

2%

2%

“I have never tried it so do not know how easy or difficult it would be. The screen is too small so I find it hard to read.”

“I would miss the interactions with the people, but it’s cool and more efficient and interesting.”


The VocaLink study shows that half of the adult population

is either already using mobile payments (20%) or is

interested in doing so (30%). The proportions increase

significantly amongst smartphone users, with 31% already

using some form of mobile payment and a further 32%

being interested in paying for goods and services from

their device. Over half (55%) of mobile bankers already

use mobile payments and a further 32% are interested in it.

Younger adults are especially likely to be mobile payment

users (41% of 16 to 24 year olds), and around half of those

who are not already using the service are interested in

doing so.

The gender profile for mobile payment users is the same

as for mobile banking users, with men making up 55% of

current customers. The age profile is similar as well, with

55% under 34 and they have similarly high levels of

ownership of tablets and smart TVs.

Again, like mobile banking users, influencers are more

prevalent among mobile payment users than the

population as a whole, comprising 53% of this group.

Mobile payments – the customers

39%

30%

26%

26%

21%

19%

17%

16%

15%

14%

12%

10%

9%

9%

7%

6%

3%

1%

18%

My current banking methods are good enough

Mobile phones can be lost/stolen easily

The screen is too small

It’s not secure

I don’t trust mobile networks/carriers

I don’t have service/capability on my phone

It’s not private or confidential

I would prefer to speak to someone in person

My phone/tablet does not have the capability

Mobile phones have network problems

I don’t feel I have control over the process

No assistance if something goes wrong

It takes me too long

I don’t know how to use this service

It doesn’t allow complicated transactions

It is expensive

I tried it and didn’t find it useful

I don’t have a bank account

None of the above

Factors that discourage non-users from mobile banking

30%

23%

23%

21%

15%

8%

10%

14%

10%

12%

8%

10%

13%

7%

10%

5%

7%

2%

23%

Male

44%

33%

27%

26%

25%

27%

17%

18%

22%

14%

14%

10%

9%

10%

6%

7%

2%

1%

16%

Female

Current mobile payment usage and interest

All respondents

Male

Female

16-24

25-34

35-44

45-55

55-65

Smartphone users

Regular mobilephone users

Mobile banking users

Mobile bankingnon-users

Definitely use

Currently using mobile payments

Interested in using mobile payments

Not interested in using mobile payments

50%

46%

53%

36%

33%

48%

61%

69%

37%

68%

13%

63%

30%

31%

29%

32%

32%

31%

30%

25%

32%

27%

32%

29%

20%

23%

18%

41%

35%

21%

9%

6%

31%

5%

55%

8%


Current mobile payment behaviour remains fragmented for

example when paying/sending money to friends and family

(6%) and paying for parking (5%), with no other mobile

payment activity attracting more than 5% of the overall

population. This is driven by the fact that there is not one

ubiquitous solution that allows consumers to pay

regardless of transaction, retailer or channel.

However, a wide range of mobile payment options are

attractive to more than a quarter of the population, over

and above those already using them. These include

paying for public transport, motorway tolls/congestion

charge, fast food, coffee and sandwiches, small daily

purchases, taxis, shopping in supermarkets and in high

street shops. Smartphone owners find all these options

even more attractive, with 30% or more saying that they

would like to use them on their phones.

As is currently the case for users, there is also a strong

expectation that mobile payments would start with

one-off payments such as parking and motorway tolls/

congestion charges, as well as paying bills and buying

tickets for sporting and entertainment events and travel.

Mobile payments activity

“I would like to pay for things like fast food, and going to the restaurant. It’s easier than carrying cash around.”

Groceries/supermarkets in store

Parking

Making one-off payments

High street retail

Online retail – general (clothes, books, DVDs, etc)

Transferring money to family/friends

Congestion charge/motorway tolls

Online groceries (supermarkets, etc)

Digital downloads (music, films, etc)

Entertainment (sporting activities, concert tickets, etc)

Online auction sites

Making regular bill payments (subscriptions, donations, etc)

Online retail of high value items (electronics, jewellery, etc)

Travel (holidays, flights, hotels, etc)

Banking products (insurance, etc)

Paying a tradesman (plumber, etc)

Online gambling sites

Paying off a personal loan

Other

32%

30%

28%

27%

22%21%21%

20%

19%

19%

16%

13%

13%11%

10%8% 6% 2%5%

If you were able to pay for items through your mobile phone — how would you expect to use it?

21%32%33%11%2%

Future shaper

Future maker

Today consumers

Yesterday consumers

Yesteryear consumers

29%36%21%

9%6%

16-24

25-34

35-44

45-54

55-65

45%55%

Female

Male

Profile of mobile payments users


For all the activities mentioned, smartphone users are

significantly more interested in the potential than the

population as a whole.

Overall the expected level of spend per transaction

reflects those expectations, with 58% of current users

willing to pay up to £50. This is similar to the pattern that

was observed when online payment began, although we

can reasonably assume that pattern of usage and

spending would move faster than was the case with online

purchasing, as people will come to mobile payments with

the online experience already firmly embedded.

A fifth of the UK say they would use their banking facilities

more if a mobile payment solution was offered by their

bank, which is even higher among smartphone users

(27%) and double (40%) that among current mobile

payment users.

The response to this question of trust suggests that

familiarity and trust to be able to handle financial

transactions are key – only 7% said they would be more

likely to use a service provided by a new company, and a

third said they would be less likely to use such a service.

Similarly, the major supermarkets and high street chains

are the names they would most trust as mobile payment

partners – more than half (52%) of smartphone users said

they would be encouraged to switch to mobile payments

if the main supermarket groups offered it. Petrol stations

were another favourite, along with major retailers such as

Argos, Boots and Marks & Spencer.

The popularity of the supermarkets as potential

generators of new mobile payment business is underlined

by the finding that almost a third of all respondents (32%)

said that they would expect to use it to buy groceries

in-store.

In terms of the technology for mobile payments, only

PayPal Mobile (64%) and mobile banking apps (60%) are

widely used, with other methods attracting only 12% or

less of mobile payment users – Google wallet (11%), QR

codes (10%) and Paytags (7%).

Current and future mobile payment usage

Paying for items using PayPal

Paying for parking

Paying for public transport tickets

Paying motorway tolls/congestion charges

Paying for small daily purchases

Fast food purchases

Paying restaurant bills or orders at the bar

Paying/sending money to friends and family

Paying for a coffee or a sandwich in a shop

Paying for goods and services in the high street

Paying for groceries in a supermarket

Paying taxis

Paying for items using an e-Wallet

Clubs, societies, schools (alternative to cash or cheque)

Paying utility bills (water/power/post-paid phone bills)

Paying for larger expenses (airline tickets, electronics)

Paying for services provided (plumbers, electricians etc)

Currently doing through mobile phone

Interested in using mobile payments

Would like to do on a mobile phone

62%

65%

66%

67%

69%

70%

71%

71%

70%

70%

71%

72%

75%

75%

76%

78%

80%

24%

30%

31%

30%

28%

27%

27%

24%

27%

27%

26%

26%

22%

22%

19%

18%

17%

14%

5%

3%

3%

4%

3%

3%

6%

3%

3%

3%

2%

3%

3%

4%

4%

2%

PayPal Mobile

Mobile banking app

Contactless payment using only your smartphone

SMS

Google Wallet

Barclays Pingit app

QR codes

Using a sticker that is attached to my phone

Boku

Other

When paying for items through your mobile phone or tablet, what applications /functions do you use to do this?

64%

40%

12%

12%

11%

10%

10%

7%4% 2%


Four in 10 non-users say they do not want to put their

card details into their mobile phone, while there are also

significant levels of concern over losing the phone and

general worries about lack of security and confidentiality.

A quarter of non-users also do not trust the mobile

networks and 18% fear being affected by network

problems.

Earlier qualitative work shows that some of these negative

attitudes towards mobile payments are driven by a lack of

understanding of how the solution would work. The same

programme also shows that a significant proportion were

much more open to the concept of mobile payment

following a demonstration of the solution.

The need for information was also strongly echoed in the

VocaLink research, particularly around the issue of security.

Most of these fears are significantly lower among those

who are already using mobile payments, which suggests

that hands-on experience really does increase

confidence. However, some objections remain:

• 25% of mobile payment users do not want to put their

card details into their mobiles,

• 27% say they do not need the service

• 24% have concerns around loss of the mobile and

security in general.

Once providers have allayed security fears, it appears that

the convenience of mobile payment is the key to

unlocking the market.

People who use mobile payments say that the main

reasons for doing so centre on convenience (52%) – it’s

quick (51%), they don’t have to carry cash (46%), they don’t

have to queue (37%) and they don’t have to carry their

credit/debit cards around (31%). Both current users and

those interested in using mobile payment quote each of

these reasons to use in very similar proportions, although

intenders are even keener to mention convenience and

not having to carry cash/credit cards around.

However, security concerns remain a barrier to increased

use of mobile payments, including 37% of all smartphone

owners who are not interested in carrying out any

payment operation on their phone and 38% of non-users

simply stating that they do not need the service.

Mobile payments – opportunities and obstacles

Reasons for using your mobile phone to pay for products/services instead of cash or debit/credit cards

It’s convenient

It’s quick and easy

No need to carry cash

It saves time queuing to pay for items

No need to carry my credit/debit card

To receive immediate confirmation that the purchase is completed

I like using the latest technology

Able to stop the function if my phone is lost or stolen

More secure than cash

More secure than debit/credit card

Because my friends use it

None of the above

I don’t have a credit card or bank account

Currently using Interested in using

56%

51%

49%

38%

36%

27%

14%

13%

9%

4%

1%

6%

2%

52%

51%

46%

37%

31%

28%

24%

17%

16%

9%

6%

6%

2%

“I might like to do it but I am not confident that it is safe. I am willing to try it, but I would need to feel more secure.”

“My biggest concern is that the technology is so new and I don’t know whether to trust it or not.”

“I have never tried is so I don’t know much about it. If it was explained more then I would consider doing it.”

“My concern for security comes from ignorance on the subject.”

60%of U

K c

onsu

mers have a smartphone


Smartphone penetration is reaching significant levels and

millions of people have the capacity to use mobile

banking and make mobile payments with devices they

already own.

With this in mind and evidence from extensive consumer

research, VocaLink believes that the time is right and

the market is ready and waiting for the right mobile

payment solutions.

The wider availability of mobile financial services,

especially if provided by banks, would increase the use of

banks’ online facilities and reduce the banks overall cost

to serve - one in five of all respondents said they would

use their bank’s online facilities more if banks offered

mobile payment services: among those already using

mobile banking and mobile payments – nearly double

said they would use them more.

A successful introduction of mobile payment systems

might even help the banks to compete in the overall retail

banking marketplace.

Trust remains the main obstacle to a more widespread

take-up, and providers need to reassure they have the

safeguards in place to ensure that their customers’ money

is secure.

Once the convenience and security of these mobile

services is fully understood, and solutions are in place to

support all payment methods, mobile could become as

universal as cards and cash are today.

Reasons for not being interested in mobile payments

I don’t want to put my card detailsin my mobile phone

I don’t need this service

Mobile phones can be lost easily

It’s not secure

I don’t trust mobile networks

I prefer to carry and use cash

It’s not private or confidential

Phone doesn’t have that capability

I won’t be able to use it if my battery runs out

Mobile phones have network problems

Accidentally paying the wrong person

I don’t know how to use this service

There is no pin code to enter when I make a payment

Too complicated to set up

It’s not widely available in my area

It’s expensive

It takes too much time to make a payment via mobile

I tried it and don’t find it useful

Other

None of the above

40%

32%

35%

38%

19%

22%

23%23% 25%

13%

17%

18%

40%

11%

8%8%

6% 6% 3%8%1%

Mobile payments – the perfect storm

2.5%Innovators

13.5%Early adopters

34%Early majority

34%Late majority

16%Laggards

SmartphonesMobile banking

Mobile payments

10% 20% 62%

If these payment services were offered by your bank on your mobile phonehow often would you buy items with yourt mobile phone

9%

LessA lotmore often

A littlemore often

Nodifference


6 in 10 consumers in the UK have a smartphone, rising

to 8 in 10 of 16-24 year olds. Men are more likely to own

a smartphone.

70% of smartphone users are under 45 years and they

are 3 times more likely to own a tablet as normal mobile

users. And mobile banking is much more likely to be

among smartphone users.

Smartphone owners are more likely to use the more

advanced features available on their devices, for example

entertainment, retail, paying for things, with the age

range 16-35 more so.

Those who have a finance/banking app tend to be those

who are between 25-44 years, male, and in a professional/

management role.

Over 1 in 4 (27%) of the 10,000 mobile /smartphone users

in the survey, claim to use mobile banking such as viewing

balances, statements, making payments/transfers.

Currently, 20% of UK consumers state they make some

mobile payments – most are under 35 and are early

adopters, paying for items via PayPal for example, or

sending money to friends and family. 63% of smartphone

owners are either making mobile payments now (31%)

or interested in the future (32%). Types of mobile payment

being made include parking, tolls and transport, settling

bills in bars and restaurants and small daily purchases.

People who use mobile payments say that the main

reasons for doing so centre on convenience and speed

with 52% of users stating convenience as a main reason

for using it – it’s quick (51%), they don’t have to carry cash

(46%), they don’t have to queue (37%) and they don’t have

to carry their credit/debit cards around (31%).

Security is a major obstacle among non- users with 40%

saying they do not want to put their card details into their

mobile phone, while there are also significant levels of

concern over losing the phone and general worries about

lack of security and confidentiality. 25% of non-users also

do not trust the mobile networks, and 18% fears being

affected by network problems.

21% of mobile/smartphone owners would use their banks

online facility more if an alternative payment solution was

offered to them. This increases to 27% among

smartphone only, and 40% among current mobile

banking and payment users.

Smartphone users and current mobile payment users are

significantly more likely to buy items more often using

their phone if their bank offered this solution. Over 60% of

current mobile payment users would increase their usage.

Banks are the most trusted providers of the service.

Mobile payments – key findings

22 Mobile usage: attitudes and payments insight report 2013

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security11 mobile payments

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able tomake mobile payments

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