Mobile payment available to 5% of Dutch consumers

Tuesday 12 April 2016 | 08:52 CET | Background

Mobile payment is slowly gaining ground in the Dutch market. A Telecompaper Consumer Panel survey in March found that 5 percent of all respondents could already pay with a mobile phone, up from 3 percent last September. The increase shows progress in the strategy of banks and mobile operators to get NFC smartphone payments up and running.

The Telecompaper Consumer Panel conducts a recurring survey into consumer interest regarding mobile payments. The results are fairly stable, showing a majority of consumers are willing to use mobile payments. Around 40 percent are not interested, even though they may soon be able to use mobile payment.

At the same time, the willingness to actively enable mobile payment appears to be in decline. Fewer people said that they are willing to download a smartphone app; 48 percent said they would download a free app for mobile payment, compared to 52 percent a few months ago. Also, fewer people are prepared to buy a new mobile phone in order to access to m-payments (6%, down from 10%) or to take a new subscription (6%, down from 8%).

The readiness to switch to a different bank is never high, at 2 percent on average, but readiness rises to 4 percent in the 20-29 year-old group. A possible explanation is that this group is less vested in financial products, such as loans, mortgages and insurance. 

The same age group below 30 is the most savvy about NFC smartphone payments; the age group over 65 the least. The gender difference also persists in the latest survey, with men more inclined than women to be interested in mobile payment.

Other results in the questionnaire have not changed much over the past six months. Nine percent of people are willing to pay for a m-payment enabled SIM card, 8 percent would do so for an app.

Meanwhile, the number of options for consumers has increased. KPN and Vodafone, ING and Rabobank have all launched mobile payment services. Rabobank has a deal in place with KPN, but not yet a complete offer. Mobile payments are still only possible on a small subset of handsets, at some of the banks and with a handful of mobile brands. On top of that, all of the services only work on Android while none work on iPhone.

All industry participants admit that m-payment still needs time to grow. The user base is increasing, but from a very low point.

This research is based on the Telecompaper Consumer Panel. Smartphone users were asked about which steps they would take to enable mobile payment, provided that enough shops accept mobile payment and that paying is just as convenient and safe as using a debit card. The survey was conducted before in March 2014 (n=2,332), August 2014 (n=1,001), March 2015 (n=1,590) and September 2015 (n=1,716). Panel participants are aged 12-80, and results are stratified according to age, education and gender. For more information about research opportunities with the panel, please contact research@telecompaper.com.

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