Mobile wallets are becoming increasingly popular in Hong Kong. The first market player entered the market in 2015, and since then more than 10 different brands have emerged. The emerging market as a whole is expected to grow substantially in the near future.
Big growth and moderate penetration are forecast
Nearly all online shoppers (95%) are aware of any mobile wallet in the Hong Kong market, particularly among those aged 15-24, and as many as 99% have heard of at least one mobile wallet service. About two-thirds of online shoppers are now using mobile wallet services. Even for mature shoppers aged 50-64 there is a moderate level of use, 54%.
The market is continuing to grow. Looking over the coming 12 months, as many as 86% of non-users say they will use mobile wallet services. So correct marketing strategies that reduce or eliminate barriers to non-users and motivate greater use among users are critical in gaining market share.
Security concerns are the biggest obstacle to mobile wallet
60% of non-users express worries about transaction security, the main reason given for not using it. About half say they are afraid that if they lose their mobile phone they will also lose money. Improving or promoting security features is undoubtedly the top priority in increasing use, particularly among mature consumers.
Convenience and promotion/incentives promote use
“Convenience” is cited as the major benefit to those using mobile wallets, especially in younger and mature groups. On the other hand, promotion and incentives are less appealing to those aged 15-24. Marketing strategies that emphasize the benefits (“convenience”) of the mobile wallet using promotions and incentives are likely to increase its use.
ABOUT NIELSEN e-FINANCE MONITOR
Digitization is transforming business around the world. Digital financial services are becoming vital in the modern economy, and Nielsen launched e-Finance Monitor 2017 in the hope of understanding more about consumer behavior in the digital financial world. The study consists of three parts: Mobile Money, ePayment and Online Insurance. All three parts cover more than 2,000 respondents from Hong Kong through face-to-face and online interviewing with different timelines spanning from March 2016 to August 2017.
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