Trends Indicate Technology on the Verge of Widespread Adoption
The majority of smartphone users (7 in 10) are shopping and/or browsing for products online and will use their smartphone for practically any type of purchase as long as it’s convenient. These users are also more likely to use electronic payment methods than checks or cash. This, according to a recent study of 2,000 consumers conducted by research consultancy Market Strategies International.
- Among smartphone purchasers, actual physical goods are purchased in almost equal proportions to digital products (77% v. 74%).
- The younger the consumer, the more likely that he/she has made a purchase using their smartphone. 51% of consumers ages 18-34 have made purchases with their smartphone, compared to 18% of consumers ages 55-64.
- Men are more likely than women to make purchases with their smartphone, and they are more likely to buy services. Women, on the other hand, are more likely to buy physical goods. 44% of men in the study have made purchases with their smartphones, compared to 37% of women.
- Smartphone users are more interested in online and mobile solutions (e.g., PayPal and mobile phone bills) while other, less tech savvy segments are more interested in retaining their traditional payment sources with their current financial institutions (e.g. checking and credit cards).
- Six in 10 consumers believe that using mobile payment solutions could jeopardize their financial and/or personal security.
“Smartphone users are shopping and purchasing through their smartphones at the rate we expected. However, we were surprised to see that users are buying physical goods at about the same rate as apps, indicating that the technology is on the verge of widespread adoption,” said Ann Graham Hannon, vice president of the financial services research division at Market Strategies.
However, regardless of age, about one-third of study participants have browsed but have not purchased because they don’t feel comfortable doing so. Clearly, providers of mobile phone payment solutions must address consumer concerns about security of personal information.
“The technology or financial services provider that moves first and fast in convincing customers that its mobile payments solution is secure and convenient will be well positioned as tech-savvy consumers move into greater use of mobile payment technology,” Hannon added.
About the Study
Market Strategies interviewed a national sample of 2,000 consumers aged 18 to 85 between October 3 and October 11, 2011. These consumers were individual or household financial decision makers with at least one financial account and a mobile phone. Respondents were recruited from the uSamp opt-in online panel of US adults and were interviewed online. Quotas were created by gender and age to match the demographics of the US population of mobile phone users. Due to its opt-in nature, this online panel (like most others) does not yield a random probability sample of the target population. As such, it is not possible to compute a margin of error or to statistically quantify the accuracy of projections.