Shoppers in emerging economies such as China and India are seeking a more luxury, personalised shopping service on their mobile and many Asia-Pacific shoppers 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.
The payment processing company’s research examined the viewpoints of 16,000 consumers across 10 global markets, including China, India, Japan and Australia in Asia-Pacific. 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.
The research found that 62% of Chinese consumers and 64% of Indian consumers are happy to pay more for an item, trip or service if the mobile user experience is better; more than the global average of 41%. In fact, 56% of consumers in India and 54% 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%
Additionally, India and China prefer purchasing via apps over mobile browsers more than any other markets in the world, at 82% vs. 18% and 80% vs. 20% respectively. This is compared to the global average of 71% vs. 29%.
Phil Pomford, general manager for Asia-Pacific, Global Enterprise eCommerce at Worldpay, said: “Shoppers in Asia’s emerging economies 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 Asian shoppers 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 shoppers feel secure.”
Indeed, security concerns continue to hinder the full potential of mobile commerce in the region. Australia is behind Asia in terms of mobile app adoption, with significant issues remaining around security and usability – 73% of Australian consumers say they only download apps from brands they trust. The number one reason for smartphone cart abandonment in Australia is concerns that the website was not secure. Security is also a concern in Japan, with just 37% of consumers saying they would be happy for apps to store their payment details, against a global average of 57%.
Pomford added: “Merchants can help to mitigate shoppers’ security fears by providing a mobile payment experience that’s quick, seamless and familiar. This might mean storing consumers’ payment details so they don’t need to enter them every time, or simply providing a range of payment options so that consumers 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.”