Smartphone rise grows but consumers lose interest in payment apps claims study

Jeremy DrumAustralians will buy more than five million smartphones next year, but researchers say they are becoming increasingly resistant to mobile payments in a warning to retailers and app developers.

With Apple Pay through American Express launching in Australia by the end of the year, Deloitte’s 2015  Mobile Survey revealed Australia now has the eight most concentrated smartphone market in the world with 79 per cent of people owning a phone and Australia’s banks had been world first movers to capitalise on the opportunities created.

But co-author of the Deloitte report, Jeremy Drumm, said despite local banks seizing the opportunity and the imminent launch of Apple Pay, the willingness of people to complete transactions on their phones was actually declining.

“Banks are progressive and innovative when it comes to mobile, online and smart paying systems, including Australians’ much loved ‘tap and pay’ cards and payment systems, which are now commonplace across the country,” said Drumm.

“However despite the success of Australian banks and businesses in introducing simple and accessible ways to enhance the retail experience, the vast majority of Australians are not using their smartphones to make payments in­store.

“The Australian mobile consumer appears to be disinclined to use their smartphones in the same way they currently use their bank or credit card.”

Drumm said that retailers and app developers needed to create more compelling reasons to convince consumers to use them as payment devices.

“Retailers and app savvy developers, will need to look beyond just the payment process and design a compelling value proposition that uses the full functionality and security of the smartphone. The simplicity of ‘pay’-waving cards is tough to beat,” he said.

Last year 40 per cent of people said they would use their smartphone to pay in a retail shop, but this year the number dropped by 16 per cent to just 24 per cent.

The survey of 49,000 people globally and 2,000 Australians revealed there are roughly 15 million smartphones in use in Australia and people glanced at there devices as a nation more than 440 million times each day.

Apple and Samsung dominate the local market with a combined 73 per cent share and Australians had show strong brand loyalty when replacing phones, the report said.

Simon Canning


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