Irish consumers slower to embrace mobile transactions

However, Ireland is slower to embrace mobile-based transactions. That is a according to Consumers & Convergence, a new global business and technology survey from KPMG. Privacy concerns also continue to be a major factor for consumers.

Compared to the findings 18 months ago, the global percentage of respondents who had used their mobile device for banking more than doubled from 19pc to 46pc. Some 58pc of global respondents said their banks offered mobile banking, but only 38pc of respondents in Ireland stated that their bank offers this service.

Worldwide, the percentage that had used a mobile device to buy goods and services went from 10 percent to 28 percent. However, in Ireland only 8 per cent of Irish consumers surveyed had used their mobile device to buy goods and services.

This indicates a potentially significant issue for retailers, says Eamonn Russell, Head of Information, Communications & Entertainment in KPMG Ireland. ''There's every reason to believe Ireland will end up with the same levels of mobile transactions as the global norm, so it seems inevitable that some existing business will come under pressure unless they can facilitate the likely demand for mobile purchases''.
 
In the case of banking, according to Russell "There have been seismic changes in our banking sector over the last 24 months but these responses indicate that mobile potential is also worth continued assessment by the financial sector in Ireland."
 
Globally, privacy concerns remain a key issue for consumers, according to Russell. "Interestingly whilst many consumers appear willing to allow their online usage patterns and personal profile information to be tracked if it were to result in lower costs or free services or content, they continue to express more anxiety about data privacy than in earlier studies.''

No free lunch

The ongoing challenge for content providers has been how to turn their internet presence into revenue, but the KPMG survey findings suggest that consumers may be getting used to the idea that they should pay something for what they consume.
 
Globally, 43pc of respondents said they are now willing to pay for access to frequently used online content. Among the Asia-Pacific countries this rises to 59 percent, with China and India the clear global leaders at 63 percent and 65 percent. However, this figure fell to just 12pc in Ireland.
 
For those willing to pay for access, the most popular types of content which people are willing to pay for are video (56pc), and music (53pc). Paid-for music is especially popular among the young, with 61pc of 16-24 year-olds saying they would be prepared to pay.
 
‘'The expanding on-line and mobile sophistication of consumers both in Ireland and globally has led to major shifts in their attitudes with significant implications for many industries including technology, telecommunications, media, retail and financial services," says Russell.

The advertising model

The survey also showed consumers to be more willing to accept advertising, although there was a clear distinction here between advertising on a PC and on a mobile device. Some 56pc stated they were comfortable seeing advertisements on their PCs, but only 42pc would accept them on their mobile devices.
 
Globally, there are also majorities in favour of seeing advertising on PC's tailored to their particular interests and activities, with almost two in three (64pc) willing to allow their online usage and personal profile information to be tracked, if this would result in lower costs. In Ireland the figure was lower at 52pc.
 
“At first sight, these results might seem to conflict with our findings on privacy and security," says Eamonn Russell, "but there seems to be a clear distinction in consumers' minds between uncontrolled use of personal information, and properly regulated use. They do see the value in allowing service providers to have access to the information necessary for more tailored services, but they are only prepared to do this if the risks are controlled and, crucially, if there is some value in it for them."

Embracing the cloud

The survey also looked at the growing area of cloud computing. Two thirds of global respondents (66pc) said that they currently use cloud computing services including data storage and shared applications. Some 20pc said they already store personal medical and financial information in the cloud.
 
But there are significant differences in the penetration of cloud services by country. In Spain, for example, 89pc said they use technologies that run in the cloud, while just half (51pc) of US consumers had adopted cloud services, and only 27pc of those in Germany. Interestingly the figure for Ireland at 75pc is significantly higher than the global average.
 
“If the global problems associated with privacy and security can be overcome to consumers' satisfaction, then  it is very likely that cloud computing will play a key role in the further growth of on-line and mobile services," said KPMG's Russell.
 
Consumers and Convergence IV is the fourth regular global survey of consumer use of technology produced by KPMG's Global Information, Communications and Entertainment practice. A total of 5,627 (including 300 in ROI and 100 in NI) respondents from 22 countries completed an online survey in the Spring of 2010.
 
Download a PDF (7MB) of the full report here.