Australian Consumer Attitudes Show Mobile Payments Issues

A survey conducted by the Australian Communications and Media Authority (ACMA) confirms one fundamental element of the mobile payments business. People in developed countries do not think they have a compelling need for some convenient, trusted new way to pay for things online or in retail stores. That means mobile payments have to provide new value, rather than simply displacing payment systems that consumers find satisfactory.


It also is important, one might add, to demonstrate some compelling value for retailers who will have to invest in new equipment and software to support mobile payments. 


Australians surveyed by the ACMA are generally satisfied with the electronic payment systems that are currently available in Australia, including debit and credit cards, internet transfers and payment services including BPay and PayPal because they offer convenient, quick methods for making purchases in store and over the internet.


The study also suggests that Australian consumers associate mobile payments with ways to purchase digital content such as ringtones for their mobile phone, or a method of voting on TV shows or entering competitions.  


The research indicated that any new mobile payment service will need to offer some advantages over current payment methods. For example, mobile payment services will need to be easier, more convenient or quicker than current electronic payments. The technology will also need to be easy for people to adopt.  


Mobile payment services that are processed by banking institutions, as opposed to telcos or mobile payment services, are perceived as more trustworthy. Respondents did not believe that telcos or mobile payment service companies have the same level of guarantees in place to protect against fraud and misuse of personal data as banks do.  


The research findings showed that users were more likely to consider payment methods that only give access to limited funds. People felt more comfortable about payments that were linked to a pre-loaded account or that only allowed the user to spend funds they have, such as with a debit card. 


But there are some “early adopter” mobile payment scenarios that make sense to people. “On the go” transactions involving micro-payments are areas where respondents see value and convenience.


There is also an opportunity for mobile payments to offer transactions that are instant and can be completed anywhere. There was a positive response to the idea of buying tickets by text message.


Respondents also had strong concerns about adding payments directly to a mobile bill linked to a credit card. They also worried that mobile payment services would involve extra charges.
Read the report here.