How does the UK place in the new world of Smartphonatics?
A study of mobile banking and payment adoption rates in 14 countries has discovered a new category of consumer: the "Smartphonatic." This person uses their smartphone enthusiastically when shopping for products and services as well as when they interact with their banks.
They are an emerging consumer force and are being credited for driving the adoption of mobile banking and payments because they believe mobile payments and banking is important and are more willing to try new technology if it will benefit them. However, while the smartphone is an agent for change – simply owning a smartphone does not make one a smartphonatic.
Globally, nearly 25 per cent of consumers can be classified as Smartphonatics, and as you would expect this segment trends toward youth, being made up of primarily Gen Yers (36 per cent) and Gen Xers (33 per cent). The number drops significantly among both Baby Boomers and Seniors with 18 and 6 per cent worldwide respectively. The U.K. sees an interesting generational switch with more Gen Xers (46 per cent) than Gen Yers (41 per cent) but mirrors global trends among Baby Boomers (8 per cent) and seniors (5 per cent).
Something that may have been less expected is where the U.K. ranks as a country in the Smartphonatics league. With Smartphonatics penetration at 16 per cent, it stands in 10th place behind India, South Africa, Brazil and China, among others (but ahead of its European neighbours France and Germany.) It if were a premier football team the U.K. would be facing relegation.
With a smaller population of Smartphonatics in the U.K., there is a great opportunity for growth into a new market. The smartphone is an agent for change and its use by Smartphonatics is setting the bar for how financial institutions and retailers will have to respond over the next five years to stay competitive.
Financial institutions, retailers and processors trying to generate mobile payment interest and demand should, therefore, deploy marketing programs which clearly demonstrate the convenience and benefits of replacing cards with a mobile wallet.
Visit http://www.aciworldwide.com/en/Overview/Whitepaper.aspx to read more about the rise of the Smartphonatic and download the full report.
Related blog posts
Why 75% of Lenders Are Adding New Payment Processing Options
“Do you want my money?” I wondered as I left the website of a lender that didn’t accept debit cards. You see when lenders offer new payment processing options they increase dollars collected by 15%. To increase collections and meet growing customer expectations 75% of lenders are currently adding new payment processing options.
As Aetna Pulls Out, How the Member Experience Can Increase Exchange Profitability
My heart sank when I did the math on Aetna withdrawing from many health insurance exchanges due to low profitability. Aetna could have avoided 2/3 of its losses by improving its member experience.
Aetna lost roughly $16 per member per month. But health plans can save up to $11 per member per month by enhancing the member experience. The key lies in automation, consolidation and service fees.
Higher Ed eCommerce Gurus on How to Make Students and Staff Happy
I love how honestly and openly schools tell each other what works and what doesn’t. Spalding University and Indiana Wesleyan University recently chatted about how they make students and staff happy. I wish you could have joined us for this eCommerce discussion for clients of Colleague® by Ellucian
But you don’t have to miss out on the best quotes. Here are some of our handpicked highlights.
How TD Bank Masters Payment Processing Risk
“You learn a lot by following the money,” a great quote that Sara Pinkus, VP of Payments Risk Management at TD Bank, told me before her PAYMENTS 2016 presentation with TD Auto Finance and ACI Worldwide entitled Hide and Seek: Uncovering Your Internal Originators and the Risks They Pose.
IWUs 8 Steps to Campus Payment System Success
Indiana Wesleyan University changed its campus payment strategy and saved $500,000 per year. Zach Whitesel, Director at IWU explains how.
How will Customer Champions Boost eBilling Profits
Two months before our baby’s due-date, we were kicked out of our doctor’s practice. Weeks before, the doctor’s bill confused me and I missed the payment. Now we did not have a doctor and the doctor lost a profitable customer.
60 of the Big Boys Now Accepting Debit Cards for Loans
I was nervous pulling out my flip phone at the party. Would my smartphone-touting friends mock me? Much the same way as I lagged behind in technology adoption, 40 percent of top lenders still do not offer debit card payment processing for loan payments.
The future of campus payment systems
Cutting out the middlemen from campus payment systems will make education more affordable.
70 percent of health plans are not ready for open enrollment
As health plans take the field to compete for 10 million online shoppers, 70 percent of them are not ready. As ill-prepared as a baseball team without an infield, 70 percent of health plans have holes in the member purchase experience.