Mobile transaction platform OpenMarket has released an industry whitepaper examining how mobile payments can be a valuable way of increasing consumer engagement and loyalty.
The whitepaper, “Mobile payment and crediting: enabling better consumer engagement” was written by Mobilesquared, and is based on a survey of 1,000 UK mobile users across the UK to gauge their perception of brands that use mobile payments and crediting, how they use these services, and how brands can better use these services to interact with consumers.
mCommerce already accounts for a significant amount of revenue for brands and retailers, with almost 19 million UK consumers purchasing goods and services via their mobile phone.
However, the fact that only 20% of UK retailers have a website that’s optimised for mobile browsing means that consumers are still not able to make as many purchases via their mobiles as they would like. As a result brands are missing out on this opportunity to engage with consumers.
The research has also found that a significant number of consumers are interested in mobile crediting – where a brand adds credit directly onto a consumers mobile bill or PAYG credit in return for interacting with it. 62% of consumers surveyed said that they would buy a product or service from a brand that offered mobile credit as an incentive: a further 31% of consumers also said that they would be likely to buy from that brand in the future.
OpenMarket’s research also found that almost one in four users want purchases of less than £10 to be automatically deducted from their mobile bill. This shows the revenue opportunity for brands which make much more use of mobile micropayments alongside secure, seamless operator billing as a way to engage with the owners of the estimated 81 million mobile devices in use in the UK.
Other highlights of the research include:
1). 55% of consumers said that the need to provide credit card details was a disincentive to make a purchase
2). 36% of consumers would happily buy products up to £10 via their phone as a spontaneous purchase
3). Only 14% of consumers felt that having mobile payments enabled via a known, trusted brand was important
4). 67% of consumers said their main concern when making a mobile payment was the accuracy of the information on their bill
“While consumers are spoilt for choice when it comes to accessing content and services on their phones, our research has shown that 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. There’s a clear opportunity for a much smarter approach to mobile payments, and that providing a good experience goes a long way when it comes to consumer loyalty.”
The whitepaper is available to download for free here.
www.openmarket.com.