The Mobile Wallet in Canada
Technology Strategies International, September 2011
Mobile payment technology is surging ahead, but is it leaving the consumer behind? Does the consumer want or need a Mobile Wallet? A TSI/Hotspex survey among 1,000+ Canadian mobile phone users and smartphone intenders looks at consumer ‘app-rehension’ over the Mobile wallet, and what’s behind it.
Previous Hotspex studies prove that smart-phones are the most emotionally driven category ever tested, on par with beer. When you layer security issues into the equation, two-thousand open-ended responses by consumers revealed a far more complex picture of what is required to gain trust. Negative emotions such as apprehension, discomfort, confusion, and pessimism were prevalent, largely driven by fraud, privacy and identity theft concerns.
In conducting this study to test the mobile wallet concept, Hotspex used its unique emotional science methodology to uncover the real drivers of acceptance amongst consumers in the Canadian marketplace. The study was designed, and results analysed, by Technology Strategies International, Canada's leading payment industry research and analysis firm.
For all players in the mobile payment ecosystem, the Mobile Wallet in Canada report offers in-depth insights into the key success criteria for this new payment technology. It comprehensively answers the following important questions:
1. What are the primary obstacles to the mobile wallet adoption?
2. What would clear the path for widespread consumer acceptance?
3. What do consumers think and feel about integrating this technology into their everyday lives?
4. What are the mobile wallet functionality ‘hot buttons’ and watch-outs?
5. Which provider is the ‘most likely to succeed’ according to consumers?
The Mobile Wallet in Canada study is the most comprehensive assessment of mobile wallet consumer acceptance ever undertaken in Canada. Drawing on a nationally representative sample of 1,003 respondents, the study was conducted in English and French, and completed in June 2011. It was conducted as a joint initiative by Technology Strategies International and Hotspex Inc.
Executive Summary
Introduction
Objectives of the study
How we did it
Significance testing
Sample profile
Core Measures of Mobile Wallet Success
Future Usage Intent, by Issuer
Ease of Understanding
Believability
Appeal
Difference
Recommendation Intent
Likelihood of Success
Unpacking the Mobile Wallet Concept
ClickSpex Analysis – Likes, Dislikes and ClickSpex Heatmaps
Consumer Feedback by Zone
- What it is
- How to use it
- Preferences
- Discounts / offers
What makes the Mobile Wallet Appealing?
What are the Key Concerns?
Consumer Suggestions for Improvement
Digging beneath the Surface
How Emotionally Driven is the Mobile Wallet?
What Emotional Reactions are Evoked by the Mobile Wallet (EmotiSphere Heatmaps by Segment)
Key Emotional Drivers
Which Personality Attributes are Associated with the Mobile Wallet – (PersonaSphere Heatmaps by Segment)
Key Personality Drivers
What are the most Important Rational Drivers of Success? (CogniSphere)
Understanding Segments
Gender
Age
Income
Education
Region
Criteria for Success
Strategies for Addressing Consumers Concerns
Dialling up on Key Emotional and Personality Drivers
Focusing on Key Segments for Early Adoption
Positioning the Mobile Wallet for Success
Mobile wallet elicits mixed response from Canadian consumers
Mobile payment technology is surging ahead, but is it leaving consumers behind? A recent Hotspex/TSI survey of more than 1,000 Canadian mobile phone users and smart phone intenders suggests that more than a third of this group of consumers would use a mobile wallet if it was offered by a bank. If the mobile wallet is issued by others in the emerging mobile payments ecosystem, usage intent is less favourable. Furthermore, while appeal of the concept is high against some metrics, there are substantial barriers to adoption.
“Most of the players in the mobile payments ecosystem are aware that consumer concerns around security are significant barriers to adoption,” says Christie Christelis, President of Technology Strategies International.
“But this research revealed some important nuances around the security issue, and also demonstrated how rational concerns about security have a deep emotional impact on consumers – which doesn’t augur well for adoption”, he says. “It is imperative for those players intending to offer mobile wallets — as well as their ecosystem partners — to design and position the mobile wallet in such a way that it addresses the emotional and rational barriers to adoption”.
The research reveals that there is clear interest in the mobile wallet concept, notwithstanding security and privacy concerns, and that consumers see some important benefits in the core elements of the mobile wallet offering. The most appealing aspects of the mobile wallet were:
- The ability to store multiple, and potentially competing, payment mechanisms in the wallet
- The ability to set payment preferences by type of merchant, for example, selecting which payment instrument would be used at restaurants and which at grocery stores, etc.
- The ability to get notified of discounts and special offers on an ‘opt-in’ basis
- The mobile wallet may obviate the need to for users to carry their bulging physical wallets with them
Apart from security and privacy issues, respondents voiced additional concerns over the following:
- The effectiveness of using a mobile wallet at the point-of-sale – some see it as more time consuming than that offered by current payment options
- The complexity of managing multiple payment instruments and multiple pre-selected vendors in the wallet
- The potential for the mobile wallet to be a source of spam from m-commerce partners
- The threat of being without a payment option available, should the mobile phone lose power.
Mobile Wallet in Canada report offers in-depth insights into the key success criteria for this new payment technology. It comprehensively answers the following important questions:
1. What are the primary obstacles to the mobile wallet adoption?
2. What would clear the path for widespread consumer acceptance?
3. What do consumers think and feel about integrating this technology into their everyday lives?
4. What are the mobile wallet functionality ‘hot buttons’ and watch-outs?
5. Which provider is the ‘most likely to succeed’ according to consumers?
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