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100 thousand users – largest Hungarian mobile payment system

As retailers endeavour to adopt multichannel customer interaction strategies, new research into British consumer behaviour and attitudes towards mobile interactions reveals that “trust” is the biggest barrier to the adoption of mobile retail and payment services.  Only 30% of British consumers trust major retailers to keep their personal information safe.

Sponsored by European customer interaction, payments and insights specialist, The Logic Group, the independent research was conducted by leading market researcher, Ipsos MORI among 1,010 UK consumers aged 16-75, during March 2013.

The Subconscious Consumer Dichotomy – Internet vs. Mobile Technology

While a majority of British consumers have Internet access (85%), browse websites for products they are considering to buy (63%) and over half (58%) will even purchase products/services online, consumer mindset towards mobile technology for retail and merchant services is distinctly cautious.

·         Only one in three (33%) consumers is happy to house their loyalty cards on their mobile phone, enabling them to collect and redeem points without cards

·         One in four (26%) consumers are happy to receive loyalty offers, which are tailored to them and their family, based on their mobile location

·         Just over one in 10 (13%) consumers are happy to house their credit/debit cards on their mobile phone, enabling them to pay for things without cards

“Retailers and merchants are faced with a chicken and egg situation when it comes to implementing mobile services as part of their multichannel customer interaction strategy,” observes Jon Worley, director of customer interactions at The Logic Group. “Consumers are reluctant about the safety of their data and they also don’t want to be bombarded by untailored offers on their mobile.  Retailers and merchants are keen to find the sweet spot for mobile customer interaction to boost their bottom line.”


The ‘Trusters’


The Logic Group’s research has found that younger people tend to be more trusting, with 34% of 25-34 year olds being comfortable sharing their data with companies compared to 26% of those aged 55-75.  Also, those in the DE socio-economic category are likely to be more trusting with their data (37%) than average (30%), as are those with children (35%).

“Retailers and merchants should be looking to engage this segment of ‘trusters’ first and foremost,” comments Honey Kirtley, head of insight and loyalty at The Logic Group. “Mobile in the retail strategy mix should not just be about payments and transactions.  Retailers should look to incorporate mobile as a customer interaction tool – to drive traffic in-store and online, allow price comparisons and promote loyalty.”


Act Now! Let’s Build Trust


By acting now to build up trust among consumers, retailers can grow the potential for mobile technology in their overall customer interaction strategy; and, as the number of ‘trusters’ grows and matures, continue to innovate to provide new and engaging ways to attract customers.”

“Every new technology has a slight level of resistance from consumers,” adds Worley. “When chip and PIN was first introduced in the UK, there was a slight apprehension from consumers as to its security.  Now it is de facto in the retail payments system, moreover with NFC-enabled cards.  The industry stakeholder ecosystem needs to align its efforts in educating and evidencing to the consumer the benefits, convenience and safety of using mobile technology.”

You can read the full details of the report here:

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