Only 11% of Australians regularly use mobile money
Tuesday 18 March 2014 — The proportion of mobile phone users actively using mobile money in Australia is tiny with just 11%1 of those surveyed using the service regularly according to EY’s Mobile Money – the next wave of growth report.
EY Telecommunications Partner Jenny Young said mobile payments are set for a sustained period of growth in Australia but challenges remain.
“This figure will grow rapidly as more merchants accept this form of payment and customers increase their knowledge,” Ms Young said.
“The increasing proliferation of near field communication-enabled handsets will also help drive growth.
“The recent launch of a new product by CBA is indicative of the increasing prevalence of these products in Australia.
“We are also seeing ongoing innovation in mobile wallets and smartphone applications.”
The widening scope of mobile payments and related services comes as supporting technologies emerge, with established and new standards being used to meet a variety of needs. While long-standing mobile messaging technologies such as SMS are being used mainly in emerging markets for money transfer and salary disbursement, NFC and cloud technologies are being used for transit payments and retailer loyalty schemes in developed markets.
“Operators in emerging markets were the first to really get on board with mobile money,” Ms Young said.
“This was driven by the lack of competing infrastructure and high demand that helped the industry to develop at a rapid pace.”
Greater interoperability between different mobile payments platforms will help to reduce customer confusion and the fragmentation of technologies.
“The issue of interoperability is a real challenge in the Australian market as it is crucial to achieving broader business goals and, ultimately, greater customer reach,” Ms Young said.
Security and privacy concerns are also challenges according to the EY research.
“Customers must be reassured that mobile money services have robust privacy and security credentials,” Ms Young said.
“Providing more detailed information on security and privacy measures and a better understanding of the service benefits would encourage customers to take up mobile money services sooner”.
1Percentage of respondents who selected ‘Use service regularly’ to describe their usage of mobile payment at location services on primary mobile device.
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