featured insights · reach of top mobile payment apps vs. mobile sites source: nielsen informate...

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


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 (%);


30

63

Engagement

(Time spent per month

among users);

Dec 2015

Engagement

(Time spent per month

among users);

Dec 2015

45%

62%


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


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


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


REACH OF TOP MOBILE PAYMENT APPS Vs. MOBILE SITES


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.


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.


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

featured insights · reach of top mobile payment apps vs. mobile sites source: nielsen informate...

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