What's Happening in Mobile Ordering and Payments?

WHAT’S HAPPENING IN ORDERING AND PAYMENTS?

Michelle Evans | Digital Consumer Manager

Euromonitor International

© Euromonitor International

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DIIGTAL CONSUMER

Euromonitor International: Strategic global market research


http://www.euromonitor.com/


100% US POPULATION IS COVERED BY AT LEAST A 3G MOBILE NETWORK IN 2015

74% OF HOUSEHOLDS IN THE US OWNED A SMARTPHONE IN 2015

94% OF MOBILE PHONES SOLD IN THE US IN 2016 ARE EXPECTED TO SMARTPHONES


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DIIGTAL CONSUMER

“He wanted to create the first phone that people

would fall in love with….He wanted to create something

that was so instrumental and integrated in peoples’ lives that you’d rather leave your

wallet at home than your iPhone.”

— former iPhone product marketing manager

Bob Borchers said of Steve Jobs in 2012

How Apple set the smartphone revolution into motion


Baltimore Sun




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DIIGTAL CONSUMER

0% 20% 40% 60% 80% 100%

China

India

Japan

Australia

Russia

Brazil

South Africa

United Arab Emirates

USA

United Kingdom

Digital Purchase by Device 2015

PC Mobile Tablet Wearables

Mobile increasingly the commerce device of choice globally


0 20 40 60

Japan

Brazil

India

Australia

China

Russia

United ArabEmirates

South Africa

United Kingdom

USA

Forecasted Mobile-Based Purchases 2015-2020

CAGR %

2015-2020 CAGR %



US consumers increasingly opting for mobile to conduct commerce


20% OF TOTAL DIGITAL PURCHASES WERE EXECUTED THROUGH MOBILE DEVICE IN 2015

46% OF DIGITAL PURCHASES ARE EXPECTED TO BE EXECUTED THROUGH MOBILE IN 2020

38% FORECASTED 2015-2020 CAGR GROWTH OF TOTAL MOBILE PURCHASES IN THE US

Photo by Euromonitor International


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DIIGTAL CONSUMER

0 10 20 30 40 50 60

No store-specific app available

Not enough room on phone to download app

App interface is not intuitive

Mobile sites do not have features of traditionalsites

Poor or unrealiable connectivity

Difficult to enter payment and shippinginformation

Inconvenient

Website is not optimized for mobile

Cumbersome to use or slow to load websites

Prefer to buy in physical stores

Security or privacy concerns

Small screen size

% of online respondents

Reasons Against Mobile and Tablet Shopping Among US Consumers

Mobile phone Tablet

Mobile shopping barriers centre on the device-specific experience


Source: Euromonitor Internationals' Hyperconnectivity Survey 2014

Photo courtesy of Airbnb




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DIIGTAL CONSUMER

Product Quality

• Wayfair

Product Selection

• Amazon

Services (Click and collect, installation, DIY assistance)

• Home Depot

Online retailers proving that price alone need not drive growth





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Best-in-class leaders powering digital-first experiences


Photo courtesy of Dominos Photo courtesy of Sephora Photo courtesy of Walgreens




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Potential benefits of a mobile-enabled environment are immense


Boost Revenues

Move more people through the line more efficiently

Drive more frequent purchases from repeat customers

Attract potential customers during low peaks in business

Reduce Costs

Lower processing fees paid by merchants

Potential for more secure payments and thus less fraud loss

Better align staffing to business needs

Enhance the customer experience

Connect with the on-the-go consumer

New ways to advertise and market

Earn and redeem rewards in a more seamless manner

Further brand proposition

Richer experience creates stronger brand affinity

Provides a platform for an embedded loyalty scheme

New ways to reward the best consumers for their loyalty




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DIIGTAL CONSUMER

Pays battle one another and others to control NFC-enabled wallet


iOS

Apple Pay

Android

Merchants

Card issuers

Other providers

Samsung Pay Android Pay




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Merchants fight for a place at its own checkout counters


Photo courtesy of Starbucks Corp Photo courtesy of Wal-Mart Stores Inc.




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DIIGTAL CONSUMER

0 10 20 30 40 50

Other

In-store mobile payments are not easy to use

None of the above

Not able to access in-store mobile payments

Not aware of in-store mobile payments

Do not think in-store mobile payments areefficient

Do not know how to use in-store mobilepayments

Do not shop at retailers with this option

No clear benefits over traditional paymentmethods

Lack of interest

Do not trust security

Convenience of established payment methods

% of online respondents

Reasons US Consumers Give For Not Using In-Store Mobile Payments 2014

Reasons that consumers do not use in-store mobile payments


Source: Euromonitor Internationals' Hyperconnectivity Survey 2014

N=8,000

Photo courtesy of Apple Inc.




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DIIGTAL CONSUMER

Mobile wallets 2.0: Loyalty driven mobile wallet products


Photo courtesy of Apple Inc. Photo by Euromonitor International




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DIIGTAL CONSUMER

Still to come: Mobile wallets 3.0 and the era of personalization


Photo courtesy of Estimote



THANK YOU FOR LISTENING

Michelle Evans | Digital Consumer Manager

[email protected]

@mevans14

https://www.linkedin.com/in/michelleevansmaclachlan

mailto:[email protected]






http://www.linkedin.com/groups?about=&gid=744327


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DIIGTAL CONSUMER

Understand digitally connected consumers around the world with

Digital Consumer, examining how technological advances,

including the arrival of smartphones to the masses and location-

based tools, are forever altering the way that consumers research,

shop and pay for all types of products and services.

Highlights

Analyse the impact of a consumer’s digital connectedness on

the path to purchase and all types of commerce in the

retailing, foodservice and travel environment as well as new

areas like the sharing economy

Understand how mobile purchases differ from purchases

made in bricks-and-mortar stores or through other digital

commerce channels

Find where consumer insights meet business opportunities to

discover markets to enter and products to push forward

Turn big-data insights into one-on-one engagements and

marketing initiatives that consumers of tomorrow will

demand from brands

About Euromonitor International’s Passport: Digital Consumer




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What's Happening in Mobile Ordering and Payments?