WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
Michelle Evans | Digital Consumer Manager
Euromonitor International
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DIIGTAL CONSUMER
Euromonitor International: Strategic global market research
WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
100% US POPULATION IS COVERED BY AT LEAST A 3G MOBILE NETWORK IN 2015
74% OF HOUSEHOLDS IN THE US OWNED A SMARTPHONE IN 2015
94% OF MOBILE PHONES SOLD IN THE US IN 2016 ARE EXPECTED TO SMARTPHONES
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DIIGTAL CONSUMER
“He wanted to create the first phone that people
would fall in love with….He wanted to create something
that was so instrumental and integrated in peoples’ lives that you’d rather leave your
wallet at home than your iPhone.”
— former iPhone product marketing manager
Bob Borchers said of Steve Jobs in 2012
How Apple set the smartphone revolution into motion
WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
Baltimore Sun
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DIIGTAL CONSUMER
0% 20% 40% 60% 80% 100%
China
India
Japan
Australia
Russia
Brazil
South Africa
United Arab Emirates
USA
United Kingdom
Digital Purchase by Device 2015
PC Mobile Tablet Wearables
Mobile increasingly the commerce device of choice globally
WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
0 20 40 60
Japan
Brazil
India
Australia
China
Russia
United ArabEmirates
South Africa
United Kingdom
USA
Forecasted Mobile-Based Purchases 2015-2020
CAGR %
2015-2020 CAGR %
US consumers increasingly opting for mobile to conduct commerce
WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
20% OF TOTAL DIGITAL PURCHASES WERE EXECUTED THROUGH MOBILE DEVICE IN 2015
46% OF DIGITAL PURCHASES ARE EXPECTED TO BE EXECUTED THROUGH MOBILE IN 2020
38% FORECASTED 2015-2020 CAGR GROWTH OF TOTAL MOBILE PURCHASES IN THE US
Photo by Euromonitor International
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DIIGTAL CONSUMER
0 10 20 30 40 50 60
No store-specific app available
Not enough room on phone to download app
App interface is not intuitive
Mobile sites do not have features of traditionalsites
Poor or unrealiable connectivity
Difficult to enter payment and shippinginformation
Inconvenient
Website is not optimized for mobile
Cumbersome to use or slow to load websites
Prefer to buy in physical stores
Security or privacy concerns
Small screen size
% of online respondents
Reasons Against Mobile and Tablet Shopping Among US Consumers
Mobile phone Tablet
Mobile shopping barriers centre on the device-specific experience
WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
Source: Euromonitor Internationals' Hyperconnectivity Survey 2014
Photo courtesy of Airbnb
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DIIGTAL CONSUMER
Product Quality
• Wayfair
Product Selection
• Amazon
Services (Click and collect, installation, DIY assistance)
• Home Depot
Online retailers proving that price alone need not drive growth
WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
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DIIGTAL CONSUMER
Best-in-class leaders powering digital-first experiences
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Photo courtesy of Dominos Photo courtesy of Sephora Photo courtesy of Walgreens
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DIIGTAL CONSUMER
Potential benefits of a mobile-enabled environment are immense
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Boost Revenues
Move more people through the line more efficiently
Drive more frequent purchases from repeat customers
Attract potential customers during low peaks in business
Reduce Costs
Lower processing fees paid by merchants
Potential for more secure payments and thus less fraud loss
Better align staffing to business needs
Enhance the customer experience
Connect with the on-the-go consumer
New ways to advertise and market
Earn and redeem rewards in a more seamless manner
Further brand proposition
Richer experience creates stronger brand affinity
Provides a platform for an embedded loyalty scheme
New ways to reward the best consumers for their loyalty
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DIIGTAL CONSUMER
Pays battle one another and others to control NFC-enabled wallet
WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
iOS
Apple Pay
Android
Merchants
Card issuers
Other providers
Samsung Pay Android Pay
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DIIGTAL CONSUMER
Merchants fight for a place at its own checkout counters
WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
Photo courtesy of Starbucks Corp Photo courtesy of Wal-Mart Stores Inc.
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DIIGTAL CONSUMER
0 10 20 30 40 50
Other
In-store mobile payments are not easy to use
None of the above
Not able to access in-store mobile payments
Not aware of in-store mobile payments
Do not think in-store mobile payments areefficient
Do not know how to use in-store mobilepayments
Do not shop at retailers with this option
No clear benefits over traditional paymentmethods
Lack of interest
Do not trust security
Convenience of established payment methods
% of online respondents
Reasons US Consumers Give For Not Using In-Store Mobile Payments 2014
Reasons that consumers do not use in-store mobile payments
WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
Source: Euromonitor Internationals' Hyperconnectivity Survey 2014
N=8,000
Photo courtesy of Apple Inc.
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DIIGTAL CONSUMER
Mobile wallets 2.0: Loyalty driven mobile wallet products
WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
Photo courtesy of Apple Inc. Photo by Euromonitor International
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DIIGTAL CONSUMER
Still to come: Mobile wallets 3.0 and the era of personalization
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Photo courtesy of Estimote
THANK YOU FOR LISTENING
Michelle Evans | Digital Consumer Manager
@mevans14
https://www.linkedin.com/in/michelleevansmaclachlan
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DIIGTAL CONSUMER
Understand digitally connected consumers around the world with
Digital Consumer, examining how technological advances,
including the arrival of smartphones to the masses and location-
based tools, are forever altering the way that consumers research,
shop and pay for all types of products and services.
Highlights
Analyse the impact of a consumer’s digital connectedness on
the path to purchase and all types of commerce in the
retailing, foodservice and travel environment as well as new
areas like the sharing economy
Understand how mobile purchases differ from purchases
made in bricks-and-mortar stores or through other digital
commerce channels
Find where consumer insights meet business opportunities to
discover markets to enter and products to push forward
Turn big-data insights into one-on-one engagements and
marketing initiatives that consumers of tomorrow will
demand from brands
About Euromonitor International’s Passport: Digital Consumer
WHAT’S HAPPENING IN ORDERING AND PAYMENTS?
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