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The luxury mobile shopper emerges in ChinaNew Worldpay research finds that mobile payment apps are on track to become the luxury shopping experience of the future in China
April 18, 2018
Wednesday 18th April 2018 – Beijing — Consumers in China are seeking a more luxury, personalised shopping service on their mobile, and many are even willing to pay more for a product or service if the mobile shopping experience is better. This is according to new research from Worldpay, a global leader in payments.
Worldpay’s research examined the viewpoints of 16,000 consumers across 10 global markets, including China, India, Japan, UK, U.S. and Brazil. Questioning consumers about their last mobile shopping experience and what makes them hit the “pay” button, the research found that mobile payment apps are on track to become the luxury shopping experience of the future in emerging economies.
Key findings in China include:
- 62% of Chinese consumers are happy to pay more for an item, trip or service if the mobile user experience is better; far ahead of the global average of 41%
- 54% of consumers in China are more likely to shop on a mobile phone if sent a personalised push notification from a nearby store; far outweighing the global average of 35%
- China prefers purchasing through apps over mobile browsers (80% app, 20% web) second only to India, ahead of a global average of 71%-29%.
- Chinese consumers are also happier than the rest of the world with apps storing their payment details so they don’t have to enter them every time (68%, versus industry average of 57%).
In addition, Chinese consumers lead in acceptance of biometric technology as long as it accelerates the payment stage. They abandon their shopping basket mostly due to a lack of preferred payment options while shopping on mobile apps.
From the global perspective, when thinking of the last purchase they made on their mobile, the majority (71%) prefer buying through an app than through a mobile website (29%). Speed and simplicity are the leading reasons. However, despite widespread use of apps for mobile purchases, significant issues remain around security and usability. User experience is valued higher in emerging economies, whereas security concerns remain in the West.
Key highlights from global perspective include:
- Consumers in emerging economies are happy to pay more for an item/service/trip if the user experience is better. Brazil (53%), China (62%) and India (64%) agreed, compared with just 31% of UK, 32% of German, and 37% of U.S. respondents agreeing.
- Brazil (63%), China (67%) and India (66%) would be happy to provide biometric data, such as fingerprint scanning or facial recognition to an app if it made the payment stage quicker, compared with 40% of German, 46% of U.S. and 49% of UK respondents. Japan appears to have higher security concerns than most, with just 32% being happy to provide biometric data.
- India (60%) is most happy to pay more for an item/service/trip if the payment experience is better, followed by China (57%), Brazil (51%); compared with just 28% of UK, 28% of German, and 33% of U.S. respondents happy to.
Tang Kok San, Country Manager for China, Global Enterprise eCommerce at Worldpay, said: “Consumers in emerging economies, especially China, India and Brazil, are active mobile users who have leapfrogged past traditional modes of online shopping and now demand a personalised, luxury, on-the-go experience in the palm of their hand. Online merchants that can deliver the right experience have much to gain, as these consumers are making bigger, more valuable purchases via their smartphones and are even happy to spend more with merchants that deliver a better experience. At the same time, to capitalise on the mobile shopping opportunity, merchants must consider how to help smartphone users feel secure.”
Tang Kok San added: “Merchants can help to mitigate security fears by providing a mobile payment experience that’s quick, seamless and familiar. This might mean storing payment details so mobile users don’t need to enter them every time, or simply providing a range of payment options so they can always use their preferred method. In China, for example, lack of preferred payment options is the top reason for smartphone basket abandonment – an important reminder that capturing this emerging class of luxury mobile shoppers depends upon providing a comfortable and convenient mobile payment journey.”
Worldpay’s research also discovered some interesting sector-specific global findings:
- More than 40% of global shoppers would look to a competitor if a retailer doesn’t offer a good mobile shopping experience – this increases to 68% in China.
- In online travel, 57% of travellers stated they’d choose to store their payment details, in addition to personal details, to process repeat bookings faster – this increases to 66% of Chinese travellers.
- Brazil and China also lead the way for number of apps installed for Digital Content (e.g. streaming / downloading movies, TV, music, games), an average of 3.5.
About the data
The research was compiled in partnership with Opinium and interviewed interviewed 16,000 consumers who have purchased goods on their mobile in the last 3 months in Australia, Brazil, China, Germany, India, Japan, South Korea, the U.S. and UK. Reports are available at: http://www.mobilepaymentjourney.worldpay.com
Worldpay, Inc. (NYSE: WP; LSE: WPY) is a leading payments technology company with unique capability to power global integrated omni-commerce. With industry-leading scale and an unmatched integrated technology platform, Worldpay offers clients a comprehensive suite of products and services globally, delivered through a single provider.
Worldpay processes over 40 billion transactions annually through more than 300 payment types across 146 countries and 126 currencies. The company’s growth strategy includes expanding into high-growth markets, verticals and customer segments, including global eCommerce, Integrated Payments and B2B.
Worldpay, Inc. was formed in 2018 through the combination of the No. 1 merchant acquirers in the U.S. and the U.K. Worldpay, Inc. trades on the New York Stock Exchange as “WP” and the London Stock Exchange as “WPY.”
Visit us at www.worldpay.com