Groceries Top Item for Mobile Payment

June 2, 2011

compete-mobile-payment-june-2010.jpgConsumers are most likely to pay for groceries at the supermarket using a near field communication (NFC)-equipped mobile phone rather than a credit or debit card, according to data collected by Compete in Q1 2011. Twenty-five percent of consumers said they would be likely to buy groceries via mobile phone.

Clothes, Phone Bill also Popular

The second-most-popular item for mobile purchase was clothes at the retailer (21%), closely followed by paying a phone bill at a local wireless store (20%) and coffee at a local coffee shop (19%). Tied at 14% were a sofa at a furniture store and a taxi ride.

Mobile Banking on the Rise

Compete data also indicates mobile banking is growing in popularity, as 51% of respondents reported using their phones for mobile banking in Q1 2011, up 27.5% from 40% in Q3 2010.

Specifically, 45% of smartphone owners used their phones to view their bank account status, 20% used their phone to redeem coupons, and 12% used their phone to transfer money to another person and purchase goods at a retail point of sale.

Personal Preference, Security Key Obstacles to Mobile Purchase

compete-mobile-obstacles-june-2011.jpgWhen consumers who indicated they were not likely to use their phone for payments were asked specifically why they were not interested, the top three answers boiled down to personal preference and concerns about security. Fifty-eight percent responded that they preferred to only use their mobile phone for communication (calls, email, or text) while 56% indicated they were concerned with the security of using the phone for payments (more than one answer permitted) and 52% were concerned about security if they lost their phone.

There was then a substantial drop in frequency of the next-most-popular response, concerns about hidden fees (39%), which in turn was far more popular than the following concern about a mobile phone battery dying (27%). Another preference-related obstacle, preferring to pay with cash, closely followed with 26% of consumers citing it.

Prosper: 8 in 10 Smartphone Users Have Browsed Products

Eight in 10 (81%) smartphone users have used their smartphone to browse or look for products or services, according to a May 2011 survey from Prosper Mobile Insights. Data from the Prosper Mobile Insights Smartphone Survey indicates locating or a store or store hours (77%) is the second-most-popular of eight retail-related smartphone activities presented to respondents.


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