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Phone eMoney: The Mobile Wallet in Canada Hotspex, a leader in the application of emotional science to insights and innovation, examines consumer response to a new technology that will enable payment transactions to be carried out via smartphone. Gera Nevolovich
The major players in the mobile commerce ecosystem – payment networks, banks, mobile service providers, retailers, and even social networks – are rapidly developing their mobile commerce offerings. The potential to use the mobile platform for processing payment has paved the way for a “mobile wallet.” This technology enables payment transactions to be carried out using a smartphone, at point-ofsale and beyond (see figure 1). Enabling consumers with new mobile payment technology, however, is not the same as engaging them in adoption of the technology. Like all technology markets, the mobile payments ecosystem will take time to build and consolidate (see figure 2) – and there is a lot of hype ahead of mainstream adoption. The hype is almost symptomatic of the energy, interest and excitement (from the industry’s perspective) that is necessary to build the ecosystem in the first place. According to leading payment industry expert Christie Christelis of Technology Strategies International, mobile wallet technology is approaching “the peak of inflated expectations” on the Gartner Hype Cycles. (Gartner Hype Cycles provide a graphic representation of the maturity and adoption of technologies and applications, and of how they are potentially relevant to solving real business problems and exploiting new opportunities.) Christie predicts that we’re about a year away from “the trough of disillusionment,” and we will finally see broad-based rollout starting in 2014. 14
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Figure 1. What do you get when you cross a smartphone with a wallet?
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Figure 2. There are notable milestones in the development of the mobile payments ecosystem.
Mobile payment technology is surging ahead, but is it leaving the consumer behind? Does the consumer want or need a mobile wallet?
In June 2011, Hotspex gave 1,000 Canadian mobile phone users and smartphone intenders (likely to buy a smartphone in the next six months) a say in the matter. All respondents evaluated the same concept description of the mobile wallet via an online survey (approximately fifteen minutes in length) following the Hotspex concept test methodology, ConceptSpex. Consumers rated the concept on traditional concepttesting metrics (such as usage and appeal), and Hotspex proprietary emotional, personality and rational attributes – to assess likelihood and drivers of success. Detailed consumer feedback was solicited on every element of the concept in order to understand key strengths and weaknesses, leading to optimization opportunities. Overall, the mobile wallet ranks on the lower end of the range when compared to other concepts tested by Hotspex. While consumers generally had a lukewarm reaction to the idea, over one-third of them were very receptive. The low ConceptScore (see figure 3) is not surprising, given the current lack of familiarity that respondents have with the mobile wallet, and the embryonic stage of the mobile payments market. The ConceptScore among payment intenders (respondents who selected themselves as likely to use their mobile phones to make a payment in the next year – before being exposed to the concept) is twice as high as the average score across the total sample. Canadians who responded well to the mobile wallet were not characterized by any single demographic profile. These early adopters included college or university graduates in higher income brackets. Younger people typically spark change in technologically driven markets, especially in the mobile market. Surprisingly, respondents in the youngest and the oldest age groups shared similar negative emotional reactions to the mobile wallet concept. There is latent interest in, and significant potential for, the adoption of the mobile wallet in Canada. But is the concept bulletproof?
The platform itself (the smartphone) happens to be among the most emotionally driven categories, on par with chocolate and beer, according to previous Hotspex research. A smartphone is literally an extension of one’s self. Layer on mobile wallet functionality that needs to balance security versus convenience, and you quickly reveal a more complex picture of what it will take to get maximum value out of the idea. vue April 2012
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Figure 3. In general, the mobile wallet ranks low compared to other concepts tested by Hotspex.
The study profiled the consumer emotional response to the mobile wallet concept on 86 positive and negative emotions. Hotspex proprietary driver maps (see figure 4) show a clear “emotional centre,” a set of feelings that all successful concepts must stimulate, while (obviously) avoiding strong negative emotions of any kind. The study also profiled the personality, or image, that the mobile wallet projects to consumers. The emotional map overlays with the personality map, such that the emotion (e.g., trust) and the personality (e.g., trustworthy) occupy the same position on the emotional and personality maps, respectively. We explore both personality and emotions in order to deliver a deeper understanding of how consumers feel and respond to concepts. Personality measurement also tends to deliver a better understanding of what is projected, while emotions better explain what is received. Brands and concepts tend to project a personality, while consumers tend to respond with a feeling. While emotions tend to be either positive (driving the impulse or desire to act) or negative (driving rejection), the impact of some personality characteristics is contextual. For example, while all concepts must be somewhat interesting, 16
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Figure 4. Hotspex maps drivers and motivators according to their impact on behaviour.
likeable and reliable if they are to be considered, marketers can strategically choose to position a product as either masculine or feminine. This space of higher emotional intensity is the space of differentiation. In addition to mapping drivers according to their impact on behaviour, our maps provide a comprehensive understanding of how drivers (emotions and personality) relate to each other. The colour coding on Hotspex maps (see figure 5) represents attribute zones such as “inspiring” or “familiar,” which are grouped according to their emotional valance. Successful concepts generate a strong consumer impulse or desire by generating high associations on all the positive emotions and brand personalities, while avoiding associations with the negative ones. Beyond the table stakes, a successful positioning will drive associations with the high-impact attributes – key drivers.
Functionally, consumers rated the concept of the mobile wallet high on attributes that are not key drivers of success, such as uniqueness and leadership, but only low to moderate on the well-known key driver of security, among others. Emotionally, the mobile wallet concept does not deliver on many of the key drivers of success, as is shown by the light-blue bubbles, which indicate association with emotional attributes (see figure 5). From an emotional perspective, not surprisingly, “interest,” “trust” and “disbelief ” emerge as three of the multiple key emotional drivers identified in the mobile wallet concept
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Figure 5. A heatmap plots mobile wallet associations.
Figure 6. Consumer clicks (likes, dislikes) and verbatim clearly indicatethe strengths and weakness of the mobile wallet concept.
test. Corresponding, personality drivers included “reliable” on the plus side and “complicated” on the minus side. We found, however, that beyond just being reliable and needing to make consumers feel safe in using the app, succeeding with the mobile wallet will also require that it be “inspiring” for consumers in the first place. Relevance is another big gap that must be filled in order to generate widespread adoption. Who should issue the mobile wallet?
The largest group of respondents said that they are likely to use a mobile wallet if it is issued by a bank, but the emotional reaction to the concept is weaker among this group of respondents than it is for respondents who preferred other potential issuers, such as payment networks, telecommunications companies, retailers, app stores, or social networks. Attaching the mobile wallet to a trusted brand will generate higher trust as well as concept appeal, but trust is just a table stake. The opportunity to drive adoption lies in playing up those features and benefits of the mobile wallet that are most appealing from a consumer perspective. Question: Are non-bank issuers more likely to deliver credibly on these benefits from the consumer perspective?
each red dot represents a dislike. We were not surprised to find that consumers were drawn to the discounts and offers that a mobile wallet could be designed to facilitate. Features such as control of payment preferences by retailer were very appealing to consumers. After all, payment is simply a means to an end – a vehicle to obtain the product or service for which you are paying. Our conclusion is that the mobile wallet is set to succeed, but not without attention to the emotional barriers that are preventing broader adoption and impairing focus on features such as preferences, discounts and offers. Join the conversation at www.hotspex.com
What’s in it for the consumer?
As for any new product, interest will be driven by promotion and benefits once the table stakes are met. Figure 6 shows a screen capture of just two of the 2,000 consumer comments (“likes” and “dislikes”) that were solicited on the concept’s description. Each green dot represents a like, and
Gera Nevolovich is vice-president of Sales and Marketing at Hotspex Inc., a leader in applying emotional science to insights and innovation. For more information, contact gera.nevolovich@hotspex.com or (416) 487-5439 ext. 227. vue April 2012
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