DUBAI – People used to spend time saving money. Today, particularly in developed economies, they are prepared to spend money to save time. But thanks to the mobile, they don't always have to. As the pace of life increases, simple solutions that save time and effort hold increasing appeal - and mobile's innate immediacy and flexibility make it the device consumers increasingly turn to for these. Convenience plays a key role in consumer's choice of mobile device - and the functions that they use it for. Ability to do things at any time, from anywhere, ranks third in the reasons for smartphone purchases; the ability to manage life better ranks ninth. Convenience is the number one driver for mobile banking and mobile wallet usage and dominates the reasons that consumers give for using location-based services. For ever-increasing numbers of consumers, across markets, income levels and demographics, the mobile phone is the device and the communications channel closest to their hearts. It is by definition intimate and personal, carried everywhere, used throughout the day and customized through taking and saving personal photos, downloading music, adding wallpapers, creating shortcuts and, increasingly, through the selection of apps and functions. "My phone" is not simply a declaration of ownership; a consumer makes their mobile their own. Mobile transactions look set to becoming a staple payment method as technology advances and trust in remote transaction gets the thumbs up from the region's consumers, said Steve Hamilton-Clark, CEO of TNS MENA. He cited the recently-published global Mobile Life Study by TNS which revealed that half of mobile phone users in the United Arab Emirates are interested in using their device as a mobile wallet to pay for goods and services. This rose to 69 per cent of users surveyed in Saudi Arabia. "Using a mobile device to bank or shop is fast becoming the norm. Worldwide mobile payment transactions are anticipated to increase by more than 60 per cent this year alone, with over 212 million uses amassing transactional values surpassing $171.5 billion," he said. Hamilton-Clark said that it is the world's emerging economies who are fast to latch on to the attributes of the mobile wallet but warned that security emerged as a primary barrier to adoption and a key reason for the slow take-up of the mobile wallet in many markets, including much of Europe and North America. TNS's annual Mobile Life study explored mobile usage among 48,000 people in 58 countries. The study confirms the massive potential but warns that deeper understanding of consumer needs, the removal of entry barriers and enhanced online security are required before a full embrace can take place. "Interestingly, the mobile wallet is perceived to be safer than cash in some countries more than others, especially in Asia and Africa. However, closer to home, the study uncovered some skepticism, with just 24 percent and 31 percent of respondents in Saudi and the UAE respectively saying that they were presently comfortable with online security facilities." On the other hand, he said that Indonesia has a 71 per cent comfort level, and in Uganda 43 percent of those surveyed believe that with mobile transactions are secure. "Despite different drivers and slow uptake across western markets, one out of three mobile users in the Middle East region looks ready to adopt the use of a mobile wallet. "Indeed, the research suggests that we have reached a global tipping point and mobile financial services looks here to stay," Hamilton-Clark noted. – SG/QJM
