UK shoppers cautious on m-commerce

11 August 2011

LONDON: Many UK consumers remain cautious about engaging in mobile commerce, but opportunities do exist for brands to change opinions in this area.

OpenMarket, the payments firm, and Mobile Squared, the research group, surveyed 1,000 wireless subscribers, and found 36% would happily buy products worth up to £10 via their phone as a spontaneous decision.

Elsewhere, 62.2% of individuals questioned said they may be more likely to acquire goods and services offering mobile credits - equivalent to a money transfer on their phone - as part of a promotion than a competing brand not doing so.

An additional 17.7% thought it was probable they would "recommend the promotion" to a friend, and 6.5% proved open to receiving further offers from the brand concerned in the future.

Almost 31% believed this kind of activity would increase the chance of their trading with the same company again, and 21% stated perceptions of brands providing such incentives would improve.

Meanwhile, 54% of participants agreed entering debit or credit card information on a handset discouraged them from making purchases on a wireless device.

PayPal was the preferred payment option for 56.3% of respondents for transactions valued under £10, with mobile phone accounts on 24%, credit or debit cards on 15.5% and Google Checkout on 4.2%.

In all, 67% of the panel asserted the knowledge they would be charged correctly for an m-commerce acquisition and certainty about the security of their personal data was of primary importance.

Figures here rose to 69.9% among female interviewees versus 62.2% for men, and also reached 69.7% for 25-30 year olds, but fell to 63.6% of 16-24 year olds.

Just 14% of contributors gave a similar prominence to recognising the brand taking their payment, while 12.8% prioritised the ease and speed of making purchases.

"There are many occasions where they would happily pay for something but the process is so complicated it simply puts them off", said Alex Moir, General Manager for Europe, OpenMarket.

"It's clear that consumers value simplicity and convenience, and will gravitate to brands that understand this."

Data sourced from OpenMarket; additional content by Warc staff