Around half of the world’s mobile owners are ready to use their phone to make purchases and manage money. http://www.tnsglobal.com/mobilelife

1. Connected world
Opinion Leader
Trust me, it’s convenient
Sustaining brand relevance with the connected consumer
Mobile commerce reaches the tipping point
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2. Trust me, it’s convenient
Mobile commerce reaches the tipping point
Around half of the world’s mobile owners are
ready to use their phone to make purchases
and manage money – but mobile finance players
must tailor their strategies to the conditions of
each market to take full advantage.
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3. Trust me, it’s convenient
Mobile commerce reaches the tipping point
Use of mobile banking and mobile wallet services is Mobile banking: identifying the opportunities opportunity for mobile banking is best understood by
set to surge worldwide as consumers respond to the Phone owners’ enthusiasm for mobile banking setting such broad distinctions aside. A more insightful
promise of convenience, and look past security concerns. varies considerably by country, even within bands of analysis groups markets according to their adoption of
The Mobile Life 2012 study reveals that 50 percent development. Significant differences in consumer and interest in the service – and the existing availability
of the world’s phone owners are either interested in attitudes emerge between different developed markets of traditional banking channels.
mobile banking services or using them already, whilst 45 and different emerging countries, and the level of
percent show the same level of enthusiasm for making
payments using their phone.
Acceptance of mobile banking
Whether in Asia, The Americas, Europe or Sub-Saharan
Africa, consumers identify convenience as the key driver
of their enthusiasm for mobile commerce. However,
different markets provide very different contexts for the
idea of doing things more easily: the sophistication of
mobile technology, the perceived dangers of fraud and
robbery and the familiarity of banks themselves all have
a role to play. Mobile finance providers must be well
aware of these nuances as they figure out which services
they should offer – and which brands they should offer
them through. Target the right markets with the right
approach and they are likely to find in mobile commerce Interested Using
a major opportunity for increasing market share.
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4. Country view - Mobile banking acceptance vs. traditional banking access
Higher access to traditional banking
Higher traditional access lower acceptance Higher traditional access higher acceptance
UK
Germany
Japan Korea
Lower interest in Higher interest in
mobile banking mobile banking
Kenya
Turkey
Romania
Tanzania
Lower traditional access lower acceptance Lower traditional access higher acceptance
Lower access to traditional banking
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5. Trust me, it’s convenient
Mobile commerce reaches the tipping point
Within developed markets, with generally strong The developed markets with the greatest appetite for
traditional banking services, the balance of smartphones mobile banking are those which are very comfortable Country view - Mobile banking acceptance
and non-smartphones in the hands of consumers with mobile technology. 44 percent of mobile owners vs. traditional banking access
tends to define how enthusiastic they are about mobile in these markets already use a smartphone, making
banking – and the immediacy of the opportunity for them the most popular form of handset versus either Higher traditional access higher acceptance
financial, and other partner brands, such as those in advanced or basic feature phones. Australia Ireland Norway
retail, technology and even consumer packaged goods. Brazil Israel Singapore
Canada Italy Spain
Chile Korea Sweden
Smartphone ownership (%)
Colombia Malaysia Taiwan*
Hong New UK
46 46 Kong Zealand USA
42
39
30 31 32 The 19 markets falling into this group of higher access
to tradition banking and higher interest in mobile
20 21 baking, which include Australia, Brazil, Korea, the UK
and USA, are also the most familiar with online banking,
already used by 58 percent of their mobile owners.
10 For banking customers, the move from online PC to
mobile banking is a small step that offers immediate
Global N America Europe Dev Asia India China Emerg Asia Lat Am MENA SSA and easily understood benefits in terms of convenience
and ‘always-on’ availability.
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6. Trust me, it’s convenient
Mobile commerce reaches the tipping point
With mobile banking services quickly flooding the Interestingly, consumers in these markets do not intend
market in these territories, the opportunity is immediate,
even urgent. Already, 15 percent of mobile owners use
to reduce their use of any other banking channels
significantly, once they take up mobile banking. Their
Mobile banking has
mobile banking services with an additional 35 percent
intending to do so. Consumers are already very attuned
intention is to fit mobile into their banking repertoires,
using the most appropriate of their portfolio of services
the benefits of
to the benefits that mobile banking offers and banks
face a potential competitive disadvantage if they fail to
for different banking tasks. Intended use of branch
banking, for example, drops only from 54 percent to
on-the-go access and
develop such services. 46 percent. Mobile banking will likely steal some of
the usage occasions previously reserved for in-branch
immediacy, however
or online exchanges – mobile banking has the benefits for more advanced
15%
of on-the-go access and immediacy, however for more
advanced transactions, people will likely still rely on
online or in-branch. Although privacy and security
transactions, people
of mobile owners use mobile banking with
register as potential barriers amongst some phone will likely still rely on
owners, there is potential for rapid growth in mobile
an additional 35 percent intending to do so.
banking if these concerns are adequately addressed online or in-branch.
in product development and communication.
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7. Trust me, it’s convenient
Mobile commerce reaches the tipping point
countries that show far less interest, despite high levels
Mobile banking channel usage - current & intended
Country view- Mobile banking acceptance of access to traditional in-branch banking services.
Global
vs. traditional banking access
Consumers in these markets are far more likely to own
Higher traditional access lower acceptance 52
basic feature phones than more advanced smartphones,
and they are significantly less likely to have tried online 45
Argentina* Germany Russia*
Belgium Greece Slovakia
banking (only 38 percent of phone owners have banked 41
Czech Hungary Switzerland this way, compared to 58 percent in the first group of 38
Republic Japan Thailand developed countries).
Denmark Netherlands UAE
Finland Poland Ukraine* The opportunity for mobile banking in these markets
France Portugal
is longer term but still potentially significant. Although
22
19
current usage of mobile banking stands at only seven 16
percent on average, a further 22 percent of phone
Amongst another group of developed countries – owners intend to try it. As smartphone penetration 7
those with higher access to traditional banking but improves, mobile banking will increasingly resonate with
lower acceptance of mobile banking - limited mobile consumers. However, those offering the services must
technology and a lack of familiarity with online banking work harder to establish the convenience benefits, and Branch Telephone Online Mobile
are holding back enthusiasm for mobile banking the value of alternatives to in-branch banking, especially Current usage Intended usage
services. Germany, France, The Netherlands, Argentina, given the lower previous take-up of online services.
Russia and Japan are amongst a group of 19 developed
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8. Trust me, it’s convenient
Mobile commerce reaches the tipping point
Those markets that are highly engaged are made up the most important feature of mobile banking for 15
Country view - Mobile banking acceptance
predominantly (although not entirely) of rapid growth percent of phone owners. In taking advantage of strong
vs. traditional banking access
markets and includes South Africa, Kenya, Uganda demand, mobile banking providers must adapt their
and Nigeria as well as China, Vietnam and Mexico. offer both to the mobile technology available in each
Cameroon Ghana Kenya Across these markets, 41 percent of mobile owners market – and the need to educate consumers. Close to
Nigeria South Uganda* have no prior access to banking services – and in their a third (29 percent) of mobile owners in these markets
China Africa Mexico enthusiasm for mobile banking, consumers appear indicate that they do not know how to use mobile
Saudi Indonesia Vietnam
to recognise an opportunity to fill this gap. To meet banking services.
Arabia Tanzania Cameroon
this demand, mobile banking providers must be ready
Lower traditional access higher acceptance to build from the ground up, addressing a lack of Interest in uses of mobile banking - Global
familiarity with banking in general and often providing
‘Convenience’ has a very different connotation in basic financial services for the first time.
emerging markets, where many mobile owners have no
prior access to banking services of any kind – and the Mobile banking offers should focus on the simple things Paying utility bills
benefits offered by mobile banking can mean foregoing in financial life: receiving wages and making payments
a day’s journey on foot to reach a bank branch rather and transfers. Sending money to relatives abroad is a
than avoiding a 10-minute wait in a queue. The value priority for many migrant workers in these countries,
Receiving your wages / salary
of mobile banking services to emerging markets has whilst Mobile Life shows strong demand for paying
been well established. However, Mobile Life reveals a utility bills via mobile (the “most important point” for
strong and occasionally surprising divergence between over 23 percent of phone owners) and receiving salaries
one group of countries that are highly engaged with the (“most important” for 16 percent). The ability simply Reading your account details
concept, and another group that have very little interest to access account details is itself highly valued – and
in it.
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9. Trust me, it’s convenient
Mobile commerce reaches the tipping point
Country view - Mobile banking acceptance
vs. traditional banking access
As phone capabilities increase,
Cote Egypt Senegal
interest in advanced features
such as mobile banking will grow.
D’Ivoire Romania Pakistan
Philippines India Turkey
Lower traditional access lower acceptance
This group features some surprising inclusions: India, Developments in mobile infrastructure are
a BRIC market and one of the most dynamic economies a precondition for mobile banking to take off in
Consumers in the final group of markets identified by worldwide, and Turkey, with its rapidly growing these countries. As phone capabilities increase,
Mobile Life also lack familiarity with both banking and economy and movement towards EU membership. interest in advanced features such as mobile banking
mobile technology. However, there is a big difference: Significant divisions between rural and urban will grow. Until then, however, these markets should
50 percent of phone owners across these markets have development and lack of mobile infrastructure appear to remain the lowest priority for those developing
no interest in engaging with banking services in general, be contributory factors: 78 percent of mobiles are basic mobile banking services.
let alone with mobile banking. The value of even simple feature phones and 43 percent of phone owners do not
financial services is poorly established. know what mobile banking is.
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10. Trust me, it’s convenient
Mobile commerce reaches the tipping point
Mobile wallet: the adaptive technology
Like mobile banking, the adoption of mobile wallet In emerging markets such as Uganda
13%
technology is growing rapidly on a global basis. Mobile and Tanzania, where mobile wallet
wallet is a broad term that signifies the use of phones to
make purchases utilising NFC (near field communication)
adoption outstrips acceptance of mobile
technology whereby consumers touch their phone to banking for now, lower technological
Smartphone user
a sensor in order to pay. Unlike with mobile banking
barriers and the simple, SMS-based
however, adoption is spread evenly across different types
of markets, with the mobile wallet concept adapting to nature of many mobile payment
9% services could be playing a key role.
the level of technology available in different countries.
There is some correlation between enthusiasm for
mobile banking and adoption of mobile wallet. Uganda, The strong early adoption of Asian
Hong Kong and Korea, the three leading countries for Advanced feature phone user
mobile wallet usage, all show high levels of enthusiasm
markets such as Japan and South Korea
for mobile banking; meanwhile India, Pakistan, The reflects retailers’ investment in mobile
78%
Philippines and Egypt fall in the bottom ten for both. payment infrastructure – and shows
the important role that merchants play
Basic feature phone user in creating a mobile wallet ecosystem.
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11. Egypt
Vietnam
Thailand
Philippines
D1. Usage of mobile
Greece
Senegal
Pakistan
India
Base: Mobile users wallet - 44220
Cam eroon
1 1 1 1 1 2 2 2
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CoteD’Ivoire
South Africa
Hungary
Ghana
3 3 3 3
Nigeria
Mobile wallet usage
Portugal
Indonesia
Rom ania
Poland
4 4 4 4 5
Czech Republic
6
Saudi Arabia
New Zealand
Sweden
Argentina
Denm ark
7 7 7 7 7
China
UAE
8 8
Ukraine
Norway
9 9
Russia
Finland
Turkey
10 10 10
Slovakia
Colombia
Netherlands
Chile
Germ any
11 11 11 11 11
Israel
France
12 12
Belgium
Mexico
13 13
Australia
Ireland
USA
14 14 14
Brazil
Taiwan
Switzerland
15 15 15
Malaysia
Canada
16 16
UK
18
Kenya
Italy
22 22
Spain
23
Tanzania
25
Singapore
Japan
26 26
Korea
31
Hong Kong
36
Uganda
In Focus

12. Trust me, it’s convenient
Mobile commerce reaches the tipping point
Mobile wallet providers must vary their approach to Mobile Life spotlights the efforts of different mobile
30%
the level of technology available in each market – players battling to take control of the mobile commerce
and also to reflect different triggers for adopting the ecosystem, with interesting variations in the question
services. Convenience and speed are the key drivers for of whom consumers trust to handle their payments.
developed and tier 1 emerging markets, but avoiding
the need to carry cash far outstrips these considerations Typically these bases of trust relate to the systems of consumers in Asian countries prefer credit cards
for tier 2 emerging countries. As with mobile banking, already dominant within the market. Mobile networks
the stakes are raised when it comes to the consumer score significantly higher on customer preference in
53%
needs that mobile commerce addresses: lack of security Sub-Saharan Africa, where existing money transfer
and fear of being robbed, trump lack of time and fear services from the likes of Kenya’s Safaricom have already
of being inconvenienced. established credibility. Credit card companies score
particularly highly in developing Asian countries, where of mobile owners worldwide preferred choice
The uptake of mobile wallet does not simply rely on they are preferred by 30 percent of consumers, as well for brands to handle money, are banks.
consumers however, and a large part of adoption is as in the heavily credit-based USA. In all territories,
reliant on retailers. Developed Asian markets are very however, banks emerge as the most trusted brands to
much early adopters of mobile wallet capabilities, handle money, the preferred choice for 53 percent of
however in many cases, particularly Japan and South mobile owners worldwide. Partnership with a banking
Korea, this adoption is quickly explained by the ease brand is likely to strengthen the appeal of a mobile
of payment in-store and infrastructural efforts retailers wallet service in the vast majority of markets.
have made.
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13. Trust me, it’s convenient
Mobile commerce reaches the tipping point
Moving forward together: mobile banking over digital security. And partnership with banks is likely In each market, mobile commerce providers must tailor
and mobile wallet in step to be a major competitive advantage in the mobile their offers to the level of technology available, the
Demand for mobile banking and mobile wallet services wallet space, lending a familiar brand presence to help enthusiasm for and understanding of mobile banking,
feed and influence one another – and this produces with education and awareness. Partnership between the providers that consumers best trust to deliver
important variations in the nature of the mobile mobile banking and mobile wallet providers will also payment services, and the nature of the freedom that
commerce ecosystem in each market. It seems likely that provide a distinct role for mobile in consumers’ existing mobile commerce provides. Freedom from fear and
the simple mobile wallet services already established repertoire of banking services. financial exclusion potentially demands very different
in countries such as Uganda and Tanzania are helping consumer messaging to freedom from queuing and
to fuel interest in mobile banking, despite the lack of The opportunity: mobile commerce call centres.
familiarity with banks overall. The accessible nature of as differentiator
mobile wallet services in these markets should influence The rapid growth in demand for both mobile
the form of mobile banking services and may well mean banking and mobile wallet services makes them a
that mobile networks, already established in the mobile vital differentiator in competitive markets. For banks,
wallet space, are trusted to help provide them. provision of mobile services is a spearhead for gaining
share quickly in rapid growth countries, and encouraging
In developed markets where mobile banking acceptance switching between providers in more mature banking
is already high, the expectations for mobile wallet markets. Meanwhile, the availability of mobile wallet
services will also be higher. More complex solutions, services will soon begin to influence consumers’ choice
such as near-field communications or touching phones of which retailer to visit, particularly in countries where
to sensors, are likely to be demanded that are tailored to mobile payments, and avoiding the need to carry cash,
smartphones and designed to allay consumer concerns are recognised as enhancing personal safety.
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14. About In Focus
In Focus is part of a regular series of articles that takes an in-depth look at a particular subject, region or
demographic in more detail. All articles are written by TNS consultants and based on their expertise gathered
through working on client assignments in over 80 markets globally, with additional insights gained through TNS
proprietary studies such as Digital Life and Mobile Life. About the Authors
Fiona Buchanan is based in Melbourne and is the
About TNS Global Connect Development Manager at TNS.
TNS advises clients on specific growth strategies around new market entry, innovation, brand switching and Fiona has been with TNS for over six years and in
stakeholder management, based on long-established expertise and market-leading solutions. With a presence collaboration with Ryan Versfeld runs the global
syndicated project, Mobile Life. Fiona provides mobile
in over 80 countries, TNS has more conversations with the world’s consumers than anyone else and understands and digital thought leadership, insights and support
individual human behaviours and attitudes across every cultural, economic and political region of the world. to a range of TNS’s global clients and local teams.
TNS is part of Kantar, one of the world’s largest insight, information and consultancy groups.
Ryan Versfeld is based in Cape Town and is the
AME Connect Development Manager at TNS. In
Please visit www.tnsglobal.com for more information. the four years that Ryan has been with TNS he has
delivered insights to a range of international clients
Get in touch and holds particular expertise in working with TNS’s
If you would like to talk to us about anything you have read in this report, please get in touch via ConversionModel to define growth opportunities for
his clients. Ryan, collaborates with Fiona to deliver
enquiries@tnsglobal.com or via Twitter @tns_global Mobile Life and advises a range of clients across the
world on mobile and digital, with a particular focus on
the AME region.
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15. About Mobile Life
Mobile Life is an annual investigation into the behaviours, motivations and priorities of the world’s mobile phone
users. Now in its seventh year, Mobile Life is the most comprehensive view of how the world’s consumers are using
their phones today and the opportunities this presents for brands. A set of interactive data visualisations exploring
the current – and potential future – use of a range of apps and services is available at www.tnsglobal.com/mobilelife
Based on 48,000 conversations in 58 countries, Mobile Life is designed to capture the entire population of mobile
users in each market and includes: Argentina, Australia, Belgium, Brazil, Cameroon, Canada, Chile, China,
Colombia, Cote D’Ivoire, Czech Republic, Denmark, Egypt, Finland, France, Germany, Ghana, Greece, Hong Kong,
Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Kenya, Malaysia, Mexico, Netherlands, New Zealand, Nigeria,
Norway, Pakistan, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Senegal, Singapore, Slovakia, South
Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Tanzania, Thailand, Turkey, UAE, Uganda, UK, Ukraine,
USA, Vietnam.
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