Home' National Liquor News : NLN AUGUST 2017 Contents 32 | AUGUST 2017 NATIONAL LIQUOR NEWS
here’s been an increasing amount of noise about mobile
payments over the past year or two. Yet in Australia, mobile
payments only accounted for four per cent of retail transactions
in GfK’s Australia Futurebuy 2016 study. And this figure hadn’t
moved since the previous two years’ studies.
WHY THE LACK OF MOVEMENT?
It’s not like Australians are averse to new technologies. Actually the
opposite is the case; we are typically one of the faster nations on the
planet for technology adoption.
Part of the issue may actually be Australia’s historic early adoption of
convenient payment technologies and innovation by the banks. We were
one of the first globally to have ATM networks in the late 1980s. We’re
one of the world’s top credit card using nations, with the concomitant
high personal debt levels to prove it.
And we’re one of the countries least likely to use cash. CapGemini/
Reserve Bank reports from the past few years typically place Australia
somewhere between fourth and sixth for the total number of non-
cash payments per person in the world. Non-cash payments have been
growing at about seven per cent a year in Australia, the report said.
According to the Reserve Bank, between 2007 and 2013 the amount of
cash used for all transactions decreased from 67 per cent to 49 per cent.
That was four years ago. You’d know yourself from being in various
stores that the sales staff hand you the EFTPOS device by default,
assuming you’re paying by card in some way.
SO WHAT’S GOING ON?
Why the slow movement to mobile phone payments?
The meteoric rise of convenient ‘tap and go’ credit and debit card
payments is one potential reason. As far back as 2014, Visa reported
that more than 50 per cent of card transactions under $100 were made
using PayWave. The figures will have only increased exponentially since.
And the ease of using one-tap credit cards is pretty similar to swiping a
smartphone over the checkout scanner.
Another is that the mobile payment platforms are fragmented, and yet
to consolidate. Various banks and some retailers have payment apps. The
problem is, shoppers don’t want thousands of apps on their phone where
some apps are accepted by some retailers and other apps are accepted
by other retailers. They only want a couple of apps that are accepted
everywhere. The ubiquitous, omnipresent distribution of PayWave is one
of the keys to its success.
IS 2017 THE
NORRELLE GOLDRING LOOKS AT THE REASONS
BEHIND THE LEISURELY PROGRESS OF MOBILE
PAYMENTS IN AUSTRALIA.
ABOUT NORRELLE GOLDRING & GFK FUTUREBUY
GfK Futurebuy is one of the world’s largest and longest standing annual
omnichannel shopping behaviour studies. The 2016 study covered 20
countries and 17 categories, and 1000 shoppers per country. Norrelle
Goldring is Shopper Lead, APAC at global research and retail datahouse
GfK. Norrelle specialises in improving shopping experiences by
understanding how and why people buy things. For more information on
GfK Futurebuy, contact Norrelle Goldring at email@example.com.
The success of payment platform consolidation is proved by what’s
happening in China. China leads the world in mobile payments
(according to GfK Futurebuy, 21 per cent of retail transactions there
were paid by mobile in 2016, versus four per cent in Australia) and
this is partly due to the omnipresence of WeChat (social network with
m-commerce) and Alipay. In-store, the payment platforms have been
activated outside of the checkout. Throughout chain supermarkets
in Shanghai the mobile payment providers offer visible discounts on
various products at the shelf. (Whether this is a tie-up with individual
manufacturers wasn’t clear). Whichever payment provider offers the best
total basket discounts at the checkout, is typically selected by the shopper.
The third potential reason for slow take-up is data security concerns.
On the plus side, a quarter of GfK Futurebuy’s 2016 Australian
participants want to make mobile device payments whenever possible
(skews to Generations Y and Z), and nearly one third think that mobile
payments are each of more efficient, faster, everything in one place, and
easier than other payment methods. But these individual benefits are
nearly outweighed by the nearly two thirds worried about their personal
information when using a mobile payment app. Fewer than a quarter
thought that mobile device payments were 100 per cent secure. Funny
that we’re not worried about the security of tap and go transactions,
then. Nobody ever said humans were rational. It’s more a question of
trust, stemming from familiarity.
So mobile payment take-up moves as fast as platform consolidation
allows and confidence in the security of the technology grows. Now that
we’re seeing the launch of well-known payment platforms like Apple Pay
and Google/Android pay in Australia, the mobile payments needle may
start to shift in the remaining half of 2017.
We’ll review this toward the end of the year once we have the 2017
FutureBuy data in a few months’ time.
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