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Mobile Payments: Crossing the Innovation Chasm © GfK 2016 Questions? Please contact [email protected] Source: FutureBuy 2015 data Despite the hype, mobile payment adoption and frequency of use in the US are still very low. How can the mobile payments industry avoid failure and encourage mass adoption among consumers? Other Debit card Cash Credit card The majority (74%) of US mobile payments users are making a mobile payment less than 4 times monthly Only 3% use mobile devices for payments, as an estimated share of all payment transactions (US) 2015 The industry needs to overcome privacy concerns among the general population in order to acheive mass adoption. 4 ways to solve Establish and communicate innovational advantage over current technologies Improve continuity with current technologies in market Minimize complexity of use Provide opportunity to trial and test the new technology before committing To bridge the Innovation Chasm with consum- ers, mobile payments’ providers should lever- age the legacy of smartphones. Value add of services, not the technology itself, drives adoption and usage. Consumers are looking for rewards, coupons, discovery of offers, and the ability to browse inventory P a s s i o n a t e s h o p p e r s I n fl u e n t i a l s E a r l y a d o p t e r s Focus on Leading Edge Conumers (LECs) who are leading indicators of where consumer behavior is headed in the future. “I am worried about my personal information when using a mobile payment app.” 52% “Making payments with a mobile device is more secure than other methods.” 16% “I am confident that my mobile device payments are 100% secure.” 20% V I V I V I
