DIGITAL WALLETCONSUMER PERSPECTIVE

DIGITAL WALLETCONSUMER PERSPECTIVE

THE

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2 © 2015 Ipsos.222222222

CHANGING LANDSCAPE.

World is ever more

digital and its impacting

Financial Sector more

than ever.

3 © 2015 Ipsos.

Blurring lines ..Non traditional entrants & new financial models..

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Eco system .. Spanned across sectors

Keys

MRT Card

06:30

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Evolving in a Competitive Landscape

440 Million users.

$720 billion in transactions in 2017

Source :Gartner

Nature of transactions

• Low to Mid value.

• Payment for Retail & Transportation

Millennial

• As an age group use mobile

payments more than others.

• Less concerned about sharing

their personal information.

6 © 2015 Ipsos.

Adaptation… Staying ahead of the curve..

Whoever’s wallet that wins market, will own the customer data.

Opportunities :

• Reaching out to Unbanked and Under banked.

• More number/frequency of transactions. Moving Cashless.

• Customer and product personalization,

• Opening up larger credit lines for SMEs and retailers.

Threats : What if an ecommerce /telecom player get a financial

license?

Opportunities :

• Micro payments (Smaller value transactions, With out losing to cards)

• Targeted and customized promotions (Leveraging customer data).

• Better integration with vendors in downstream.

• Operational Efficiency ( Less queue time, lesser number of terminals)

• Mobile POS & Pay on the go (Pizza Express)

Challenge : Cost of infrastructure and adaptability to multiple mode of

transactions.

7 © 2015 Ipsos.777777777

CONSUMER ATTITUDE

“Nobody’s going to adopt

anything that’s not going

to solve a problem in an

existing way.

Right now, everybody’s

looking at technology and

not what it’s doing to make

my life better. It should be

about technology to make

the consumer’s life easier”

PayPal..

8 © 2015 Ipsos.

A Global Segmentation ..

GLOBAL SURVEY

24 Countries.

16, 976 Adult mobile users.

Ipsos Global @dvisor online panel survey.

An attitudinal segmentation developed from mobile payment Study

covering UK, Canada, China, Russia, Czech Republic. Expanded and

calibrated to cover 24 countries across Americas, APAC, Europe,

Middle East and Africa in H2 2014.

.

The survey instrument is conducted monthly in 24 countries around the world via the Ipsos

Online Panel system. The countries reporting here in are Argentina, Austria, Belgium, Brazil

Canada China, France, UK, Germany Hungary India Italy Japan Mexico Poland, Romania,

Russia Saudi Arabia South Africa South Korea Spain Sweden Turkey and USA.

REGIONAL SURVEY

5 Countries.

2,588 Adult mobile users.

Ipsos online panel survey.

A regional survey Replicating the approach and structure of the global

survey. Survey was conducted among 16 to 54 year old from 5 regional

countries (Malaysia, Singapore, Indonesia, Thailand and Hong Kong)

during H1 2015.

5 countries are purposively selected as they are in different stages of

development and adoption of payment gate ways . Developed with

predominantly non cash (SG & HK), Almost there (MY & TH) and

starting phase of development (Indonesia).

This is only snapshot and highlights from these surveys .

9 © 2015 Ipsos.

Understanding and awareness – knowing who will provide mobile payments,

the types of services and where to use such services, and what are the benefits.

Payment security – expectations on payment security and guarding against

fraud.

Technical support – expectations of provision of support by payments service

providers.

Willingness and intentions – intent to use mobile payments as soon as they are

available, including modifying or upgrading a mobile phone to use such services

Scepticism – issues with effort and lack of security with mobile payments and

requirement that such services be more established to facilitate adoption

Key dimensions for your consumers

10 © 2015 Ipsos.

Dimensions to segments

Consumers who are concerned

about effort and security, awaiting

for mobile payments to become

more commonplace before using

such services.

CONFIDENT OPEN DISENGAGED CAUTIOUS

Consumers who feel that they have a

relatively good understanding and

awareness about mobile payments

and are more willing to use such

services.

Consumers who have a relatively

positive intention to use mobile

payments but lack the understanding

and knowledge about such services

Consumers who are unlikely to use

mobile payments and who have

relatively low interest overall.

Age : 16 to 45 Yrs.

Income : Mid to High income

Education : University +

Heavy Social Media Usage.

Age : Young (Below 30 Yrs.)

Income : Across Income groups

Education : University +

Heavy Social Media Usage.

Age : Middle and Above (40+)

Income : Low to middle income.

Education : Across

Traditional Mediums

Age : Middle and Above (40+)

Income : Low to middle income.

Education : Across

Both Traditional & Social mediums

11 © 2015 Ipsos. 10% or Less

Confident .. High growth & Emerging markets

11% to 25% 26% to 40% 40% and More

CH

IN

BR

ME

SA

RU

KSA

TUU

S

C

A

SKSP IT

S

W

U

K

A

U

AR

ID

TH

MY

S

G

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Open : Opportunities in developed markets

11% to 25% 26% to 40% 40% and More

CH

SK

BR

ME

SA

RU

KSA

TU

AR

JP

IN

CA

US

UK

SP

IT

SW

G

E

F

A

AU

HK

TH

ID

MY

SG

13 © 2015 Ipsos. 10% or Less

Disengaged: Sizeable segments in Japan and Western Europe

11% to 25% 26% to 40% 40% and More

M

E

A

R

FR

B

R

KSA

JA

SK

GE

S

W

SP

IT

U

S

C

A

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Cautious : More convincing needed in established markets

11% to 25% 26% to 40% 40% and More

TUUS SP

IT

SW

AU

CA

M

E

A

R

S

A

GE

FR

R

U

UK

HK

T

HM

Y

IDS

G

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ADOPTION BARRIERS

We believe a

combination of factors

– part structural, part

user experience –

will drive the next and

larger cycle in digital

wallet adoption.

16 © 2015 Ipsos.

Security ofPersonal Data

Trust in FinancialSystem

Transaction Fees

Adoption Barriers & Motivators

Technical Infrastructure

PhoneCompatibility

Retail VendorSelection & Coverage

Savings & PersonalFinance Management

Motivators:Market forces that encourage adoption.

Barriers :Market forces that discourage adoption.

17 © 2015 Ipsos.

Way forward to encourage usage..

Prioritize Communicate Socialize Supportive Diagnose

Service Providers should

priorities what they want to

achieve from each segment

and whom to partner to reach

that segment.

There is a knowledge gap for

many consumers, and they

need to be updated on the

benefits than features.

We need to create a context

where mobile payments are

seen as established and

normal.

There needs to be a

constructive eco system

between entities to support

the consumer

Nobody knows your customer

better than you. Better

understand the needs and

behaviors of end consumers.

DIGITAL WALLETCONSUMER PERSPECTIVE

DIGITAL WALLETCONSUMER PERSPECTIVE

THE

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