Early Days for Mobile Payments Adoption in New Zealand
Slow uptake of mobile payments methods in New Zealand according to MasterCard Mobile Payments Readiness Index (MPRI)
Consumer willingness to adopt higher than global average
Confidence in New Zealand legal and regulatory systems high
AUCKLAND – 3 August, 2012 – – New Zealanders have been slow to utilise mobile payment methods despite consumer confidence in regulatory systems and strong willingness to adopt according to the MasterCard Mobile Payments Readiness Index (MPRI) unveiled today.
The index is an analysis of 34 countries and their readiness to use three types of mobile payments: person to person, mobile web commerce and mobile contactless payments at the point of sale.
Globally, the MPRI found that while no two markets are the same, consumer readiness is the critical success factor to drive mobile payments adoption around the globe.
“While current usage numbers are relatively low, indications are that New Zealand has the right infrastructure to potentially make mobile payments methods widely accepted,” said MasterCard New Zealand Country Manager Albert Naffah.
“The fact that willingness to adopt is high but familiarity is low signifies that consumer education is necessary to make consumers aware of the benefits. Collaboration between mobile networks and banks is necessary to facilitate this.”
Despite earning an overall score of 32.7, just below the index average of 33.2, New Zealand’s regulatory system scored high marks in efficiency, beating the industry average for both the protection of intellectual property rights and financial assets and the effectiveness of laws relating to information and technology.
In a measure on consumer sentiment, the index revealed that while usage in New Zealand is low across the three payment types, willingness to use mobile payments was higher than the global average and that willingness to adopt scored higher then familiarity.
Overall, the MPRI identified Singapore, Canada, the United States, Kenya and South Korea as the most prepared markets. The Index indicates that while it’s early stages for mobile payments adoption, all markets globally – either highly scaled and integrated ones like the United Kingdom or compact and technology-driven ones like Singapore – are making progress towards reaching an inflection point where mobile devices account for an appreciable share of the payments mix.
The Index also found that in some markets such as Australia, young affluent consumers between the ages of 18 and 34 years old are the most willing to engage in mobile payments as they recognize the value of using mobile payments instead of cash or payment cards. While this demographic was predominantly male in most countries, women showed higher levels of interest in countries such as China, Egypt and the Philippines.
In addition, findings of the MPRI reveal that partnerships among the key players in the mobile payments ecosystem are essential to accelerate the commercialization of mobile payments. Cooperation and collaboration among financial institutions, telcos, governments, technology providers and others can foster an environment that enables a market to reach critical mass.
Other key findings include:
“Technology infrastructure, a responsive regulatory environment and a robust economy are table stakes for the advancement of mobile payments,” said Theodore Iacobuzio, vice president, Global Insights, MasterCard Worldwide. “The necessary conditions are consumer readiness and industry integration. As no one entity can develop and promote mobile payments by itself, key players in the ecosystem must work together to collectively advance the cause of mobile payments.”
To download an executive summary of the MasterCard Mobile Payments Readiness Index, view an Interactive Global Map of the data or study the findings of the 34 countries that make up the Index, please visit http://mobilereadiness.mastercard.com
Research findings from the MasterCard Mobile Payments Readiness Index were compiled by MasterCard Global Insights between October 2011 and February 2012. The Index examined 34 global markets. Each market was ranked on a scale of 1 to 100 with scores derived from an algorithm comprised of over 50 quantitative and qualitative inputs including economic, demographic, telecommunications and payments industry data as well as proprietary consumer research. These inputs were then weighted and combined into six components including Environment, Financial Services, Regulations, Infrastructure, Consumer Readiness and Clusters and Partnerships. The six components were combined, yielding a single readiness score for each country.
MasterCard (NYSE: MA), www.mastercard.com, is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.