mastercard impact of innovation study regional report ... · healthcare, education and public...

© 2016 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.

September 2016

Regional Report – Total Europe

MASTERCARD IMPACT OF INNOVATION STUDY

2 2

3 BACKGROUND & OBJECTIVES

4 METHODOLOGY

6 EXECUTIVE SUMMARY

8 ATTITUDES TOWARDS DIGITALIZATION

15 PAYMENT AND AUTHENTICATION METHODS

26 SEGMENTS BASED ON LEVEL OF DIGITALIZATION

32 IPSOS PROJECT TEAM

CONTENT

3

Background & Objectives

Mastercard commissioned LocalTime PR and Ipsos Hungary to conduct a regional

study on digitalization of different areas of consumers’ life.

The aim of the study is to measure the

level of digitalization and to better understand related habits and attitudes in

23 countries.

Measuring segments based on the openness towards digitalization and cross-

country comparisons are also included in the study objectives.

4

Methodology

Target group: online urban population aged 20-50 years, bank users, owning a bank account. Participating countries are: Hungary, Slovakia, Czech Republic, Poland, Serbia, Bulgaria, Austria, Croatia, Israel, Romania, UK, Italy, Germany, France, Sweden, Turkey, Russia, Ukraine, United Arab Emirates, South Africa, Egypt, Kingdom of Saudi Arabia and Kenya Sample structure: N=1000 respondents per country, representative sample of 20-50 aged online urban population by gender, age and region Methodology: online self-completed interviews via Ipsos access panel Questionnaire: 20 minutes long self-completed online questionnaire

5

Sample structure of the online population of consumers by regions

Distribution of the samples along demographic groups (in %)

Europe

Gender male 52

female 48

Age 20-29 23

30-39 33

40-50 43

Education

primary 1

vocational 14

secondary 21

college / university 64

I do not want to answer 1

Working status

I have my own company 8

I work as an employee 70

I am currently unemployed 5

I am a student 5

I am on maternity leave 2

I am a pensioner 2

I do not work / full-time mother / etc. 5

I do not want to answer 3

Social status

A 30

B 11

C1 15

C2 14

D 6

E1 1

E2 19

NA 4

Significantly higher vs. total sample

Significantly lower vs. total sample

6 6

Mastercard Impact of Innovation Study - Executive Summary

Attitudes toward digitalization

Payment & authentication methods

Segments based on level of digitalization

European consumers have a positive attitude towards digitalization and innovation: on the regional level more than two thirds are rather satisfied with digitalization and more than 50% think that innovation has a favourable impact on society.

An overwhelming majority think that digital services will spread further, and only around 1 out of 10 respondents think that they will remain the privilege of a smaller group.

Public education, healthcare and public transport are the most important areas to innovate in all markets.

Executive summary

Mobile payment has the highest potential to become a widely accepted payment method: more than a half would choose it instead plastic cards in almost every country. UK, Germany, France and Austria are the most traditional in terms of payment devices.

Regarding the authentication method safety of the bank account is the most important factor, but personal data protection is also a much relevant need, especially in Israel and Bulgaria. Biometric authentication is currently used by a minority, but generally consumers in Europe do not have serious safety concerns with it.

Segmenting factors vary on a wide scale across countries, especially the penetration of online banking and mobile payment. Sweden, Russia and Ukraine are the most developed when looking at the banking aspect. The highest number of digital services is used by the Ukrainian, Turkish and Swedish consumers.

Regarding total segment distribution, Sweden, Russia and Ukraine have the highest share of eager promoters. Share of resistants is below one fifth of the population in most of the countries.

8

Attitudes towards digitalization

9

Total Europe

UK IT DE FR SW HU SK CZ PL RS BG AT HR IL RO TR RU UA

Europe

The majority of consumers are rather satisfied with digitalization regardless of the country, while they were a bit more cautious when rating the impacts of innovation on society

1 1 1 2 1 3 1 2 1 0 0 0 1 1 2 0 3 0 0 4 5 4 5 6 5 4 4 6 3 4 3 7 5 6 2 6 1 1

25 33 28 30 38

21 21 34 34

22 22 22 26 25 21

15 23

17 15

47 48 52 50

46

44 44 42 45

50 51 39 48 45 44

44 43

46 45

23 12 15 13 9

27 30 18 14 25

23 35

17 23 27 38 26 34 38

3,9 3,7 3,8 3,7 3,6

3,9 4,0 3,7 3,6 4,0 3,9 4,1 3,7 3,8 3,9

4,2 3,8

4,1 4,2

1

2

3

4

5

0%

20%

40%

60%

80%

100%

Total UK IT DE FR SW HU SK CZ PL RS BG AT HR IL RO TR RU UA

Q2A. Satisfaction with 'digitalization’

1 – Not at all satisfied, I’m afraid we are heading in the wrong direction 2 3 4 5 – Completely satisfied, I think this is the way it should be Average (1-5)

Base: all respondents

Total Europe


Europe

2 1 2 1 3 1 4 2 2 1 1 2 2 3 3 1 3 1 1 8 6 6 8 15

4 14 9 13 9 9 8 13 11 10 3

11 5 4

31 31 35 42

44

21

34 37 39 32 26 27 41

32 32

20

33 22 21

39 45 43 38

33

40

32 34 37

40 41 34

32 36 38

44

35

40 37

20 17 13 10 5

35 16 17 10 19 22 29

12 18 17 33

17 32 37

3,7 3,7 3,6 3,5 3,2

4,0

3,4 3,5 3,4 3,7 3,7 3,8

3,4 3,5 3,6 4,1

3,5 3,9 4,1

1

2

3

4

5

0%

20%

40%

60%

80%

100%


Q2B. Innovation has a positive effect on society

1 – Does not have a positive impact at all 2 3 4 5 – Definitely has a positive impact Average (1-5)

10

84%

76% 84%

78%

81%

86%

87%

84%

86% 83%

89%

91%

83%

85%

91%

87%

82%

89%

92%

Total

UK

IT

DE

FR

SW

HU

SK

CZ

PL RS

BG

AT

HR

IL

RO

TR

RU

UA

Digital services will be used on more and more areas of life, and by more and more people

Digital services will be used on more and more areas of life, but it will remain the privilege of a smaller group of people

The areas of using digital services will remain very close to the current state

Fewer and fewer people will use digital services

An overwhelming majority of European consumers agree that digital services will be used on more areas by more people


Q6. What should we expect from the future regarding digital services? Total Europe

11 Base: all respondents

Healthcare, education and public transport are the main areas where more innovation of digital services would be necessary

Q5. Too few digital services on this area, more innovation needed

Europe

Total Europe


commerce

networking, meeting people

healthcare

public education

financial issues / services

public transport

automobile, driving a car

other type of transport

travelling

hosting & catering

work-related

0-20% 21-40% 41-60% >60%

12

Payment & authentication methods

13

Europe

Total Europe


65%

24%

14%

25%

8%

3%

6%

8%

20%

45%

14%

10%

14%

8%

5%

5%

2%

41%

68%

34%

16%

25%

11%

5%

6%

4%

15%

55%

18%

14%

24%

6%

4%

5%

6%

28%

27%

7%

6%

9%

3%

4%

2%

2%

61%

47%

18%

10%

14%

6%

5%

6%

9%

31%

54%

16%

13%

20%

8%

6%

6%

4%

28%

57%

22%

16%

24%

8%

6%

7%

4%

24%

69%

29%

16%

24%

4%

9%

9%

10%

14%

72%

34%

19%

27%

9%

8%

9%

12%

15%

49%

18%

12%

20%

7%

9%

6%

6%

31%

70%

32%

17%

28%

9%

7%

6%

6%

15%

58%

32%

15%

18%

11%

13%

10%

8%

22%

72%

48%

21%

29%

11%

14%

14%

15%

10%

Mobile payment has the highest potential across all countries, especially in Sweden, Serbia, Turkey and Ukraine. UK, Germany, France and Austria are the most traditional in terms of payment devices.

Q11. Preferred device for payment

41%

16%

13%

10%

9%

5%

4%

4%

43%

31%

15%

6%

21%

6%

3%

2%

3%

49%

72%

28%

19%

35%

19%

5%

8%

6%

15%

57%

16%

21%

29%

9%

7%

7%

6%

24%

mobile phone tablet smart watch ID card / passport

implant fitness band jewellery household appliances

none of these

52%

24%

13%

19%

8%

8%

7%

7%

31%


14

PIN code fingerprint scan code received via SMS during the transaction

'selfie' pay other

Europe

Total Europe


The preferred authentication method varies a lot across countries, but fingerprint scan was chosen by at least a third in almost every country


Q12. Which authentication method would you prefer when paying with your bank card?

46%

40%

8%

5%

1%

23%

39%

30%

7%

1%

40%

35%

19%

3%

3%

8%

37%

48%

4%

2%

41%

41%

9%

4%

4%

31%

40%

25%

2%

1%

31%

36%

29%

4%

1%

32%

35%

29%

3%

1%

37%

34%

25%

4%

1%

30%

48%

17%

4%

1%

33%

30%

30%

5%

1%

43%

31%

23%

2%

1%

36%

50%

8%

5%

1%

31%

33%

29%

6%

1%

29%

30%

33%

7%

1%

15%

39%

38%

7%

1%

29%

25%

43%

2%

1%

21%

38%

33%

7%

0%

28%

35%

31%

5%

1%

15

4 1 2 1 3 1 4 2 2 1 1 2 2 3 3 1 3 1 1 9

6 6 8 15

4 14

9 13 9 9 8 13 11 10 3 11

5 4

27 31

35 42

44

21

34 37

39 32 26 27

41 32 32

20

33

22 21

38 45 43

38 33

40

32 34 37

40 41 34

32 36 38

44

35

40 37

22 17 13 10 5

35 16 17 10 19 22 29

12 18 17 33

17 32 37

3,6 3,7 3,6 3,5 3,2

4,0

3,4 3,5 3,4 3,7 3,7

3,8

3,4 3,5 3,6

4,1

3,5

3,9 4,1

1

2

3

4

5

0%

20%

40%

60%

80%

100%

1 – Not at all secure way of payment 2 3 4 5 – Completely secure way of payment Average (1-5)

Biometric authentication methods are used by a minority for the time being. On the whole few concerns arose regarding their safety, but in some countries consumers still have to be convinced. Swedish, Romanian, Russian and Ukrainian consumers have more trust in them.


Total Europe


Europe

Q13. To what extent do you feel it is a secure way of making purchases authenticated with your fingerprint, facial features, or with another biometrical method?

Q14. Penetration of biometric authentication methods

7% 6% 5% 4% 2% 10% 5% 4% 3% 7% 15% 8% 8% 8% 9% 6% 19% 4% 12%

16 Base: all respondents

Ratings of biometric authentication along different aspects were moderate in most of the cases, but it is definitely considered to be an innovative solution for payment

Europe


These are safer than the traditional authentication methods

It is trendy, cool to pay with these methods

They ensure a fast payment process

These authentication methods are easy to use

They are new, innovative solutions for payment authentication

3,5 3,4 3,6 3,2 3,2 3,3 3,7 3,6 3,5 3,6 3,7 3,5 3,1 3,5 3,3

3,6 3,6 3,7 3,8

3,2 3,2 3,1 2,9 2,9 3,0 3,4 3,5 3,5 3,2 3,3 2,9 3,0

3,4 3,1 3,4 3,4 3,3 3,3

3,6 3,4 3,6 3,6 3,4 3,6 3,9 3,6 3,5 3,7 3,8 3,5 3,6 3,9 3,4 3,8 3,7 3,6 3,6

3,6 3,5 3,5 3,4 3,3 3,4 3,8 3,6 3,5 3,7 3,9 3,6 3,5 3,8 3,6 3,7 3,6 3,7 3,7

3,8 3,7 3,8 3,5 3,4 3,7 4,0 3,9 3,9 3,8 3,8 3,7 3,5 3,8 3,8 3,8 3,8 4,0 3,9

Q15. Below you can see some statements told by others about using biometric authentication when shopping. Please rate each of them on a 5 point scale according to what extent do you agree with them!

17

Security of the bank account is the No. 1 factor everywhere when choosing the authentication method. Personal data protection is especially important for Bulgaria and Israel.


Europe


the security of my bank account

the security of my personal data

speed of the process

simplicity

1,6 1,5 1,8 1,5 1,5 1,7 1,6 1,5 1,5 1,7 1,8 1,7 1,5 1,7 1,8 1,7 1,8 1,5 1,8

2,1 2,0 2,1 2,1 2,0 2,1 2,0 2,0 2,1 2,2 2,0 1,9 2,1 2,0 1,9 2,1 2,0 2,1 2,1

3,1 3,2 3,1 3,3 3,3 3,3 3,1 3,2 3,1 2,9 3,1 3,1 3,3 3,1 3,1 2,9 3,0 3,1 2,9

3,2 3,2 3,1 3,1 3,2 2,9 3,3 3,2 3,2 3,2 3,2 3,2 3,1 3,2 3,2 3,3 3,2 3,3 3,3

Q16. Factors when choosing the authentication method

18

Segments based on level of digitalization

19

Definition of segments

service service service

device

banking

banking

banking

device

banking

banking

banking

device

banking

banking

banking

resistant

drifting follower

enthusiastic follower

eager promoter

For defining segments based on levels of digitalization we have used the following aspects:

banking

low no online banking (via browser or app) and no mobile payment

mid user of online banking (via browser or app) but no mobile payment

high user of mobile payment

device

low

0-3 pcs. of the following devices: smartphone, tablet, smart TV, smart watch, sports-related smart device, health-related smart device, streaming box / set-top box, wireless speaker / headphones, drone, e-book reader, MP3 player / portable media player, game console

mid

4-6 pcs. of the following devices: smartphone, tablet, smart TV, smart watch, sports-related smart device, health-related smart device, streaming box / set-top box, wireless speaker / headphones, drone, e-book reader, MP3 player / portable media player, game console

high

7+ pcs. of the following devices: smartphone, tablet, smart TV, smart watch, sports-related smart device, health-related smart device, streaming box / set-top box, wireless speaker / headphones, drone, e-book reader, MP3 player / portable media player, game console

service

low 0-3 services used with monthly frequency (selected in Q1 and codes 1-6 in Q2)

mid 4-10 services used with monthly frequency (selected in Q1 and codes 1-6 in Q2)

high more than 10 services used with monthly frequency (selected in Q1 and codes 1-6 in Q2)

From the combination of the 3 aspects we defined 4 general segments:

20

Levels of digitalization on different areas are quite different across Europe, especially the penetration of online banking and mobile payment varies on a wide scale


Distribution of segment components Banking Devices Services

Europe

Total

UK

IT

DE

FR

SW

HU

SK

CZ

PL

RS

BG

AT

HR

IL

RO

TR

RU

UA

23%

22%

40%

26%

37%

3%

26%

20%

12%

14%

38%

29%

12%

31%

21%

51%

8%

21%

11%

52%

65%

50%

68%

58%

57%

58%

69%

75%

60%

44%

53%

79%

47%

64%

45%

61%

32%

34%

24%

13%

10%

6%

5%

40%

17%

11%

13%

26%

19%

18%

9%

22%

15%

4%

31%

47%

54%

28%

20%

23%

35%

48%

21%

29%

26%

25%

26%

32%

21%

26%

31%

22%

19%

29%

25%

24%

39%

40%

44%

37%

35%

40%

43%

48%

45%

40%

44%

41%

38%

44%

38%

40%

36%

37%

42%

33%

40%

33%

28%

17%

39%

29%

26%

30%

34%

24%

38%

36%

25%

40%

41%

35%

38%

35%

12%

18%

14%

15%

26%

4%

10%

11%

15%

17%

4%

8%

9%

7%

5%

7%

8%

5%

2%

61%

67%

61%

68%

64%

51%

72%

77%

72%

68%

77%

60%

72%

69%

57%

68%

49%

56%

49%

28%

16%

25%

17%

9%

45%

18%

12%

13%

15%

19%

33%

19%

24%

38%

25%

43%

39%

49%

low mid high

21

12 11 15 17

27

3 12 11 11 10

17 10 9

15 7

13 6 9 4

42 42 43

48

51

36

50 56 52 45

45

40 49

45

42 41

42 34 34

27 33 29

24

16

33

25 24

25 28

28

28

27 26

27

33

28 28 34

18 14 13 10 5

28

13 9 12 17 10

21 15 13

24 13

25 28 28

0%

20%

40%

60%

80%

100%

resistant drifting follower enthusiastic follower eager promoter

Same goes for total segment shares: they differ a lot within Europe, with Sweden, Russia and Ukraine being the most developed


Total Europe


Europe

Segment shares

22 22

IPSOS PROJECT TEAM

Andrea Ágoston Account Manager [email protected]

+36 1 476 7622

Péter Kunos Account Director [email protected]

+36 30 356 54 89

+36 1 476 7765

Ipsos Zrt. - Budapest, Thaly Kálmán u. 39. H-1096

www.ipsos.hu www.ipsos.com © 2016 Ipsos – All rights reserved. This proposal constitutes the sole and exclusive property of Ipsos. Ipsos retains all copyrights and other rights over, without limitation, Ipsos' trademarks, technologies, methodologies, analyses and know how included or arising out of this proposal. The addressee of this proposal undertakes to maintain it confidential and not to disclose all or part of its content to any third party without the prior written consent of Ipsos. The addressee undertakes to use this proposal solely for its own needs (and the needs of its affiliated companies as the case may be), only for the purpose of evaluating the proposal for services of Ipsos. No other use is permitted.

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