Australians confident about the future of shopping with Virtual Reality

30th May 2017 – Australia – New research from Worldpay, a global leader in payments, has revealed that half of Australians surveyed expect to be shopping using Virtual Reality (VR) and Augmented Reality (AR) technology in the near future. Confident that VR and AR will live up to the hype, over three quarters of respondents say the technology will have use in specific industries, and over half expect it become as popular as smartphones in the future.

Worldpay’s research queried 2,000 consumers in Australia to get their viewpoints on VR and AR adoption – from current uptake and future potential, to the technology’s benefits and barriers. The research reveals that although many consumers haven’t tried VR for themselves, the majority surveyed see a future for VR and AR technology; particularly within specialist industries and retail. Key findings in Australia include:

• 76% of respondents say VR and AR technology has specialist uses in certain industries, such as travel experiences (83%) and design (83%)
• More than half (52%) surveyed believe VR and AR may become as popular as smartphones in the future
• 61% of respondents say VR and AR could someday change the way we shop
• However, less than 1 in 5 surveyed think that VR and AR could spell the death of brick-and-mortar stores
• Just 23% of those surveyed said that the ability to visualise a product or experience in VR/AR would make them more likely to impulse buy; and
• And only 22% of respondents have actually used VR technology.

Phil Pomford, General Manager for Asia Pacific at Worldpay, said: “Australian consumers are cautious in their adoption of VR and AR technology, with just 14% describing themselves as early adopters. At the same time, the majority are confident that VR and AR is here to stay. They think these technologies have a place in Australia’s future; whether it’s helping skilled trade industries carry out repairs, enabling automotive companies to design more accurate prototypes, or creating new Omni-channel retail experiences for online merchants or bricks-and-mortar stores.”

In terms of retail, Australians are keen to have more opportunities to experience VR and AR when they shop. Fifty percent of those surveyed said they want to see VR in stores and use the technology in retail apps; and another 52% said they would consider making a purchase while using a VR or AR device. At the same time, security of payment details was noted as the main barrier to VR shopping for 46% of respondents. Of those who wouldn’t currently feel comfortable purchasing a product or service using VR, some said they might be swayed if they could pay via a method such as PayPal (39%) or using a secret code (30%).

To help overcome the perceived security barrier, researchers at Worldpay are investigating how shoppers can pay using a credit or debit card while remaining immersed within a virtual environment. The global payments processor has created a proof of concept, which provides the same levels of convenience, and security that shoppers have in-store and online, without needing to leave the virtual world.

Commenting on the findings, Rogier de Boer, VP of Business Development for EMEA at Worldpay said: “Although consumer appetite for VR is growing, there is a long way to go before the technology goes mainstream in The Netherlands. In addition to scepticism about the value of VR, consumers are uneasy about storing their payment details in a virtual world. However, it’s worth remembering that people only recently became comfortable with mobile banking and shopping on our smartphones. Consumers just need a bit more time to get acquainted with making payments in VR, and companies have a responsibility to ease their transition by offering a seamless and secure shopping experience.”

To help overcome the perceived security barrier, researchers at Worldpay are investigating how shoppers can pay using a credit or debit card while remaining immersed within a virtual environment. The global payments processor has created a proof of concept, which provides the same levels of convenience, and security that shoppers have in-store and online, without needing to leave the virtual world.

The prototype design uses Host Card Emulation (HCE) to virtualise the purchasing process. The payment uses EMV* technology, and for purchases up to $100, the prototype would work in the same way a contactless payment does – with a tap of the (virtual) card across a (virtual) card machine. For higher value purchases, Worldpay has created a technology called AirPIN.

This first of its kind system allows the consumer to see a range of numbers whilst immersed in the virtual reality environment, and then collect the four numbers that make up their PIN, one by one, using their virtual controller.

Pomford added: “As more companies experiment with VR/AR in their endeavour to drive higher customer engagement, they need to consider if VR technology can support purchases as well. Whatever the sales channel, it’s vital to make the payment process both slick and secure for customers. A compelling, immersive and seamless VR experience may even have the capability to increase sales.”

* EMV stands for Europay, MasterCard and Visa, and is a global standard for credit and debit cards that uses computer chips to authenticate (and secure) chip-card transactions.

About the data
The research was conducted by research house Opinium in March 2017 and interviewed 16,000 consumers who have heard about Virtual or Augmented Reality in Australia, Brazil, China, Germany, Japan, The Netherlands, United States of America and United Kingdom. The full report The 360 consumer: how VR is reshaping the buying experience is available upon request.

About Worldpay
Worldpay is a leading payments company with global reach. We provide an extensive range of technology-led payment products and services to around 400,000 customers, enabling their businesses to grow and prosper. We manage the increasing complexity of the payments landscape for our customers, allowing them to accept the widest range of payment types around the world. Using our network and technology, we are able to process payments from geographies covering 99% of global GDP, across 146 countries and 126 currencies. We help our customers to accept more than 300 different payment types.

For more information, visit http://www.worldpay.com/global

For more information, please contact:

Global eCom
Emily Lahey, PR Director
+44 (0) 203 664 5663
emily.lahey@worldpay.com

Golin
Mark Lenyszyn
lenyszyn@gmail.com
+61 417 240 228