Mobile payments are about to take hold of the UK mass market - report

Tuesday 13 January 2015 10:25 CET | News

There is significant pent-up demand across the UK for mobile payments made via the mobile phone bill or using available credit from a pay-as-you-go account, a recent report reveals.

According to a recent survey from global provider of integrated mobile solutions Oxygen8, over 23 million people in the UK would like to use mobile payments.

The research points out that purchasing a car park ticket ‘remotely’ or via one’s mobile phone, a few years ago was almost inconceivable. In the UK, over 4 million people now pay for their parking via their mobile phone, the research adds.

The study also highlights that there is almost a direct correlation between the number of respondents using the mobile money functionality on their mobile device and the number of total respondents using their mobile device for banking (46%). Twenty-two percent connect with their bank via an app, while 24% continue to use the website. This means virtually every mobile money user in the UK is using mobile banking, the study suggests.

The research also shows that 25% of respondents said that they have purchased an item on eBay using their mobile device, 14% have paid bills, while 10% have purchased clothes via an app, and 9% have bought groceries via an app.

The report also highlights that males are more likely to conduct payments on their mobile device (such as paying bills, ordering groceries via an app, paying for car parks and transferring money) than females, whom are more likely to purchase items on eBay or purchasing clothes via an app. Of the 12.65 million actively purchasing goods via eBay, 53% (or 6.8 million) are female, compared to 5.85 million males.

However, the study indicates that the greatest difference in usage based on percentage terms was the number of males that purchase coffee via an app. Of the 1.54 million people currently using the Starbucks app in the UK, 1.1 million are male (or 70%).

When Oxygen8 asked consumers if they would like to use their mobile phone to make “any payments, anywhere” how would that change their purchasing behaviour? Eleven percent said that they would like to use their mobile phone only and would stop using credit and debit cards. Thirty-six percent would like the option of paying with both a mobile phone and cards. In total 47% of the UK market would be interested in using their mobile device to purchase anything, anywhere.

When the research was applied to actual UK mobile market numbers, it has shown that 5.3 million people in the UK would stop using their debit and credit cards altogether and just use their mobile phone to make payments. Almost 18 million mobile users would welcome the option of being able to pay with either mobile phone or their debit or credit cards. Combined, this brings our total of over 23 million interested in making mobile payments in the UK, the study concludes.

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Keywords: mobile payments, mobile, payments , UK, mass, market, report, mobile phone bill, Oxygen8, study, research, mobile money, mobile banking, eBay, money transfer
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce