featured insights · reach of top mobile payment apps vs. mobile sites source: nielsen informate...
Post on 23-Mar-2020
7 Views
Preview:
TRANSCRIPT
1FEATURED INSIGHTS | THE SMARTPHONE BECOMES THE MOBILE WALLET Copyright © 2016 The Nielsen Company
1
F E AT U R E D I N S I G H T S
C A S H I S N O L O N G E R T H E K I N GT H E S M A R T P H O N E B E C O M E S T H E M O B I L E WA L L E T
The smartphone—already a Swiss-army knife of information, content
and entertainment—is rapidly becoming a convenient medium for
making payments. Mobile payments* have largely been considered a
product for developed markets, but based on current trends in India,
they hold just as much appeal in developing markets.
DELIVERING CONSUMER CLARITY
MOBILE WALLETS IN USE
8 KEY REGIONS – 2018 (1.5 BILLION WALLETS)
Source: Juniper Research
*This study focuses on mobile payment apps and does not cover PC payment gateways.
NORTH AMERICA LATIN AMERICA WESTERN EUROPECENTRAL & EASTERN EUROPE FAR EAST & CHINA INDIAN SUBCONTINENT
REST OF ASIA PACIFIC AFRICA & MIDDLE EAST
2 FEATURED INSIGHTS | THE SMARTPHONE BECOMES THE MOBILE WALLET
According to U.K-based Juniper Research, more than one in three mobile
wallets and over 50% in developed markets, will feature contactless
payment by 2018. With the proliferation of mobile payment apps, the
Indian smartphone user has increasingly begun to go cashless. The
popularity of such apps has risen from over one-in-five active users last
year to over one in every two users this year.
An analysis of real time metered smartphone usage data with Nielsen
Informate Mobile Insights reveals how Indian consumers are using
mobile payment apps.
OVERALL TIME SPENT ON MOBILE PAYMENTAPPS HAS INCREASED BY NEARLY 1.5X
AUG 15 SEPT 15 OCT 15 NOV 15 DEC 15
69.3757.53 66.11
89.27 95.37
55%50%
54% 57% 59%
Source: Nielsen Informate Mobile Insights
REACH % MINS PER MONTH
TODAY, USERS SPEND AN HOUR AND A HALF ON MOBILE PAYMENT APPS EVERY MONTH
3FEATURED INSIGHTS | THE SMARTPHONE BECOMES THE MOBILE WALLET Copyright © 2016 The Nielsen Company
MALES DRIVE MOBILE PAYMENT CATEGORY ON SMARTPHONES
Mobile wallets have made transactions effortless, and more men seem
to have embraced this concept than women. Mobile payment apps
are 1.2x more popular among men than women, and men are 2x more engaged with these apps than women.
PENETRATION OFMOBILE PAYMENT APPS (%);
Source: Nielsen Informate Mobile Insights
30
63
Engagement
(Time spent per month
among users);
Dec 2015
Engagement
(Time spent per month
among users);
Dec 2015
45%
62%
4 FEATURED INSIGHTS | THE SMARTPHONE BECOMES THE MOBILE WALLET
SMALL TOWN BUZZ
Our findings indicate that even though the penetration of mobile
payment apps among users is similar across towns of all sizes (60% of
those in large towns and 58% of small town use them), usage is higher
among small town users, with these consumers spending 109 minutes
a month on these apps.
MOBILE PAYMENT APPS
TIME SPENT BY USERS IN LARGE TOWNS ( > 10 LAC POPULATION)
TIME SPENT BY USERS IN SMALL TOWNS ( < 10 LAC POPULATION)
(mins/month); Dec 2015 (mins/month); Dec 2015
10991Source: Nielsen Informate Mobile Insights
5FEATURED INSIGHTS | THE SMARTPHONE BECOMES THE MOBILE WALLET Copyright © 2016 The Nielsen Company
LESS IS MORE
Industry experts say the key to rapid acceleration of mobile payment
app adoption is to make the payment process simple for the
consumer. The less information the consumer has to manually
enter, the better the adoption rate. The other key factors that limit
consumers’ willingness to use mobile payments include trust,
convenience and unstable data connectivity.
But such limitations aside, the ease of use coupled with the evolution
of smartphone users have led to massive growth in popularity of these
apps over a short span of time with users spending as high as one
hour per month on them.
TOP MOBILE PAYMENT APPS
Source: Nielsen Informate Mobile Insights
TOP MOBILE PAYMENT APPS TIME SPENT BY USERS
Reach (%); Dec 2015 (mins/month); Dec 2015
PAYTM
MOBIKWIK
FREECHARGE
MY AIRTEL
MY VODAFONE
OXIGEN WALLET
PAYTM WALLET
POCKETS BY ICICI
39%
26%
17%
10%
7%
6%
5%
4%
70
40
29
18
17
17
14
23
6 FEATURED INSIGHTS | THE SMARTPHONE BECOMES THE MOBILE WALLET
REACH OF TOP MOBILE PAYMENT APPS Vs. MOBILE SITES
Source: Nielsen Informate Mobile Insights
According to data with Nielsen Informate Mobile Insights, the most
popular mobile payment apps in terms of time spent, are those that
provide services over and above pure payment like mobile recharging,
ability to book movie tickets, shopping and so on. This ability to
multitask creates a ‘sticky’ factor with users.
TAKING THE APP ROUTE
Mobile payments are largely done through apps and in fact these apps
are rapidly overshadowing their website presence when it comes to
usage on smartphones. Paytm, the frontrunner among mobile payment
apps, has three in every 10 smartphone users using their app. However,
just one in every 10 users use the company’s website. Similarly for the
other major players like Mobikwik and Freecharge, the popularity of
their mobile sites is considerably less than that of the app.
(%) DEC’15
PAYTM MOBIKWIKFREECHARGE
39%26%
20% 17%11%
4%
APPS SITES
THE GROWTH IN MOBILE PAYMENT APP POPULARITY REFLECTS THE EASE OF PAYMENT AND TIGHT INTEGRATION WITH POPULAR SERVICES (E.G., TAXI HIRE, BILL PAYMENTS, GROCERY SHOPPING, TICKET BOOKING, ETC.). THIS GROWTH IS SET TO CONTINUE AS MORE AND MORE SERVICES ADOPT THESE PAYMENT METHODS.
7FEATURED INSIGHTS | THE SMARTPHONE BECOMES THE MOBILE WALLET Copyright © 2016 The Nielsen Company
APP RETENTION
THE ‘STICKINESS’ FACTOR
The retention of mobile payment apps is fairly low with only about a
quarter of installers continuing to use them after three months. While
attracting users by offering first-use discounts and promo offers gives
companies operating in this space a good start, customer loyalty can
be built only after the user interface becomes simpler.
PAYTM MOBIKWIK
FREECHARGE
May - July ‘15 May - July ‘15
May - July ‘15
THE ROAD AHEAD
Despite the challenges, the possibilities for mobile payments are
seemingly endless. Not only do they have the potential to simplify the
payment process, they also have the potential to take personalized
customer interaction to a whole new level with the help of effective
user interface and ease of completing transactions. In order to be
effective and achieve a higher reach, the mobile payment system can
benefit from standardisation across banks, focusing on security and
increasing trustworthiness.
Looking ahead, powerful innovations and higher smartphone
incidence especially in developing countries where most active users
are under the age of 40, are likely to create an explosion in the number
of players entering the mobile commerce business. And while all these
players will look to capitalise on the younger demographic and rise in
smartphone adoption, differentiation will be the key to win in such a
marketplace.
100
100
10073
69
6926
19
2725
14
20
USAGE IN JULY
USAGE IN MAY
USAGE IN JUNE
INSTALLATIONS IN MAY
Figs. in % Source: Nielsen Informate Mobile Insights
242 230
168
WITH REDUCTIONS IN CASHBACK OFFERS/DISCOUNTS, MOBILE WALLET PLAYERS WILL NEED TO FOCUS ON BUILDING TRUST, CONVENIENCE AND AWARENESS BACKED BY MARKETING SUPPORT.
8 FEATURED INSIGHTS | THE SMARTPHONE BECOMES THE MOBILE WALLET Copyright © 2016 The Nielsen Company
METHODOLOGY
We leveraged innovative smartphone metering technology to provide
insights into evolving consumption patterns of mobile device users.
Based on accurate, real-time usage data, we help clients understand
consumer behaviour and develop product and marketing strategies.
Nielsen-Informate Mobile Insights maintains opt-in Smartphone panels
to generate syndicated reports, in addition to building custom panels
and conducting custom surveys for clients. Our insights aid decision
makers across various segments like operators, OEMs, publishers,
advertisers, content creators and aggregators and application
developers.
For this study we looked at the behaviour around mobile payment
apps (mobile wallets)* of our opt-in panel measured by our On-Device
Meters.
*This study looks at the usage of standalone payment apps on
smartphones, which account for a lion’s share of transactions made
via mobile wallets. Please note that in instances where mobile wallets
are either integrated within third-party apps or where mobile wallets
are used for offline payment via OTP, our metering technology would
not be able to capture the usage since the mobile payment app is not
directly being used.
9FEATURED INSIGHTS | THE SMARTPHONE BECOMES THE MOBILE WALLET Copyright © 2016 The Nielsen Company
DOLLY JHA
EXECUTIVE DIRECTOR
NIELSEN INDIA
PRITHVI RAJ
SENIOR MANAGER
NIELSEN INDIA
ABOUT THE AUTHORS
ABOUT NIELSEN Nielsen Holdings plc (NYSE: NLSN) is a global performance
management company that provides a comprehensive understanding
of what consumers watch and buy. Nielsen’s Watch segment provides
media and advertising clients with Total Audience measurement
services for all devices on which content — video, audio and text
— is consumed. The Buy segment offers consumer packaged goods
manufacturers and retailers the industry’s only global view of retail
performance measurement. By integrating information from its Watch
and Buy segments and other data sources, Nielsen also provides its
clients with analytics that help improve performance. Nielsen, an S&P
500 company, has operations in over 100 countries, covering more
than 90% of the world’s population.
For more information, visit www.nielsen.com.
Copyright © 2016 The Nielsen Company. All rights reserved. Nielsen
and the Nielsen logo are trademarks or registered trademarks of
CZT/ACN Trademarks, L.L.C. Other product and service names are
trademarks or registered trademarks of their respective companies.
Karthik Shanbhag and Surbhi Bhardwaj from Nielsen Informate
Mobile Insights team contributed to this issue of Featured Insights
top related