2011 online-payment-poll

© 2011 Javelin Strategy & Research– All Rights Reserved

Why Consumers Don’t Pay: Opportunities for Digital Commerce

Conducted by Javelin Strategy & Research December 2011

2011 Online Payment Poll

Why Consumers Don’t Pay: Opportunities for Digital Commerce — December 2011 2

Table of Contents

Executive Summary……….……….……………………………………………………………………………………………………………..………………...4

Implications of the Study………………………………...…………………………………….………………………………………………………...4

Methodology…………………………………………………………………………………………………………………………………………………...5

Survey Results and Analysis……..………………………………………………………………………………………………….…………………….…...6

Secure and Convenient Payment Options Drive Additional Purchases……………………………………………………………...6

Credit Card Related Fraud Concerns Still a Major Barrier for Online Shopping……………………………..…………………..7

Privacy and Security are Leading Frustrations for Most Consumers………………………………………….……………………...8

Additional Payment Options Drive an Annual Spending Increase………………………………………..…………………………...9

Consumers Have Abandoned Online Purchases at Point of Payment……………...………………..…………………………...10

Security and Privacy Spur Consumers to New Forms of Payment……………………………………………………………………11

Payment Options are Prime Factors Driving Online Content Purchases…………………………………………………..……..12

Four Times More Consumers View Carrier Billing More Secure Than Loading Card Data on the Phone….………13

Mobile Phone, Home Phone and Broadband Bills Top Consumer Preferences for Charging Small Purchases….14

Digital Purchases More Likely When “No Credit Card Required” Options are Presented…………………………….....15

Conclusions.….………………………………………………………………………………………………………………………………………………………..16

Key Point of Analysis……………………………………………………………………………………………………………………………………….16

Background and Methodology………..…………………………..……………………………………………………………………………..………...17

Project Background………………………………………………………………………………………………………………………..……………...17

Methodology for Consumer Survey………………………………………………………………...……………………………………………..17

Appendix.……………………………………………………………………………………………………………………………………………………………….18

Survey Respondents by Content Interest Category………………………………………………………………………………………...18

Survey Respondents by Mobile Payment Experience……………………………………………………………………………………..19

Survey Respondents by Gender……………………………………………………………………………………………………………………...20

Survey Respondents by Age…………………………………………………………………………………………………………………………...20

Survey Respondents by Last Online Purchase……………………………………………………..………………………………………….21

Survey Respondents by Household Income…………………………………………………………………………………………………….21

Survey Respondents by Ethnicity………………………………..………………………………………………………………….……………...22

Survey Respondents by Technology Adoption………………………………………………………………………………………………..22


Executive Summary

In September 2011, Javelin Strategy & Research

undertook the 2011 Online Consumer Payment

Preference Survey to determine consumers’

willingness to make purchases online. This report

presents various findings and results of this research.

Javelin found that the majority of decisive

consumers (79%) would buy more digital goods if

they had safer and easier payment options than

using a credit or debit card. This overwhelming

indication of pent‐up demand and lost opportunity

for commerce was consistent across a wide range of

segments such as age, ethnicity, income, geography,

early/late adopters of technology and gender.

For survey respondents, content interest areas were

strong for a wide variety of digital services, including

music, software, games, video and applications.

Nearly two‐thirds of consumers had made an online

digital purchase in the last 12 months.

This study found a significant "commerce gap" of lost

business caused by consumers’ huge concerns about

the use of credit cards online and related issues of

privacy, fraud, security and convenience. Credit card‐

related privacy and security are the leading

frustrations for most consumers because they don’t

like providing personal financial information and are

concerned this information could be misused. In

addition, a majority of all consumers (57%) are

abandoning online purchases before checkout,

causing merchants to lose business.

In addition to credit card owners who have major

concerns and hesitate using their cards online, 12%

of consumers do not own a credit or a debit card,

indicating that they cannot transact online without

alternative payment options. Merchants that deploy

alternative payment solutions, such as mobile

payments, carrier billing or other non‐card payment

solutions, can realize significant incremental

business from both the hesitant credit card holders,

who do not want to use cards online, and those who

have no ability to use cards online.

For small digital purchases, four times more mobile‐

enabled consumers view using carrier billing — such

as mobile phone payments that charge right to the

operator —safer than loading credit card

information to make payments. Only one‐third of

consumers have used their mobile phones to make a

payment, but interest in using a mobile phone for

payments beyond bills and mobile apps is strong.

Merchants deploying additional payment options

can reach and convert more potential consumers

and capture millions of dollars in additional revenue.

This report provides guidance to digital merchants by

demonstrating how an advanced payment approach

can increase online sales.


Executive Summary (Continued)

Key findings from the 2011 Online Consumer

Payment Preference Survey highlight consumers’

concerns and merchants’ opportunity:

The vast majority of online consumers,

regardless of their socio‐demographic status,

would be inclined to purchase more if they were

given easier and more secure payment options.

A majority of consumers have abandoned online

transactions before checking out, representing

lost business for the merchants.

Concerns about credit card‐related fraud are still

a major barrier for consumers to transact online.

Over half of all consumers were very concerned

that their credit card information could be

intercepted or misused as a result of a digital

transaction.

Digital merchants could realize incremental

average monthly revenue of $89 per consumer

simply by increasing the available payment

choices.

Over 50% of consumers would buy more if “no

credit card required” was an option for

payment.

Four times more consumers believe that

charging to a phone bill is more secure than

loading their personal credit or debit card data.

More than half of consumers interested in

charging small digital purchases to their phone

bill would prefer to charge them to their existing

mobile phone bill as an alternative to using

credit or debit cards.

Implications of the Study

Digital merchants providing consumers a choice of

secure and convenient payment solution options

beyond traditional credit and debit cards can drive

significant incremental subscriptions, transactions

and purchases. Mobile payments through carrier

bills that do not require a credit or debit card could

be the best solution for these merchants because

mobile phone usage is not only prevalent in the

U.S., but it is also seen all over, with coverage

spanning 5 billion people worldwide.1

The survey spotlights an outstanding opportunity

for digital merchants to grow revenue simply by

including additional payment choices. The presence

of such non‐card payment options addresses many

of consumers’ security and privacy concerns.

Options other than credit cards also address

inconveniences and disproportionate risk that

consumers face with traditional payment

mechanisms, particularly for relatively small digital

transactions of less than $25. These additional

options can result in increased spending on both

individual purchases and recurring subscriptions.

Mobile payments, carrier billing or other non‐card

payment choices can unlock substantial incremental

revenue and dramatically widen the potential

audience, including large and desirable segments of

consumers who either cannot or prefer not to use

traditional credit or debit cards online.

1http://www.bbc.co.uk/news/10569081, accessed Nov. 16, 2011.


Executive Summary (Continued)

New potential audiences for digital merchants to

monetize span the full spectrum of

sociodemographics. For example, high‐income and

middle‐income segments as well as younger

consumers indicated even more concern about using

credit cards online and showed a higher propensity to

buy more if they had safer and easier payment

options.

Methodology

Commissioned by PaymentOne, the 2011 Consumer Payment Preference Survey was conducted to reveal

consumers’ concerns and behaviors related to online/mobile purchase decisions and payment preferences.

Javelin Strategy & Research undertook this consumer survey in order to determine consumers’ willingness to

make purchases online, concerns and frustrations over making small digital or content purchases online and

consumer attitudes that affect payment choices, including interest in charging small online purchases to a

mobile carrier bill. This report presents various findings and results of this research. In September 2011,

Javelin performed an online survey of 2,000 U.S. consumers over the age of 18. To ensure accuracy and a

representative panel, Javelin measured panel participation demographics against those of the U.S population

over 18 years of age.

A more complete profile of the respondent panel is included in the appendix of this report.


Survey Results and Analysis

More Secure and Convenient Payment Options Would Drive Additional Digital Purchases for a Majority of Consumers

An overwhelming 79% of decisive consumers (those

who indicate a preference) are eager to purchase more

online if given easier and more secure payment options

than credit and debit cards.

For certain demographic segments, the inclination to

purchase online is very pronounced and the

incremental revenue opportunity is greater. For

example, among 18‐ to 24‐year‐old decisive consumers,

93% would purchase more digital goods via computers

and mobile phones if they had better payment options.

Among decisive consumers, 81% with over $100,000 in

annual household income and 90% with household

income between $75,000 and $99,999 indicate an

inclination to purchase more with additional payment

options using devices such as computers, regular

mobile phones or Smartphones.

Among certain ethnic groups, this inclination to

purchase online is prominent as well; 86% of decisive

Hispanics and 87% of decisive Asians and African‐

Americans would increase online purchases if they had

more secure and easier payment options, such as

mobile payments or carrier billing.

By introducing complimentary, non‐card payment op‐

tions, such as mobile payments, online merchants and

service providers can convert those who do not

currently purchase online and expand activity among

those who do limited online purchasing.

Consumers would buy more digital goods if they had more secure and easier ways to pay than with credit and debit cards.

79%

21%

Yes

No

N = 1400Base: All Respondents

Note: Respondents who answered “Not Sure” are not shown

© 2011 Javelin Strategy & Research

1.

If there were easier and more secure alternatives to using credit cards or debit cards, would you be more inclined to make online purchases using devices such as computer, mobile phone or Smartphone?


Survey Results and Analysis (Continued)

Credit Card Related Fraud Concerns Still a Major Barrier for Consumers to Transact Online

Spam, security and privacy fears lead the list of concerns for inactive online shoppers.

More than half of all surveyed consumers (55%) have

shopped online in the past 90 days using computers

and mobile phones (refer to Figure 5 in the appendix)

for purchases of under $25. However, these consumers

indicated serious concerns with online shopping

because of fraud related to credit and debit cards.

Despite aggressive campaigns by merchants and card

companies, fraud concerns loom for a majority of con‐

sumers hindering online shopping growth.

Among consumers who regularly shop online via

computers and mobile phones, more than half (51%)

are concerned that their credit card data will be

intercepted or that unauthorized parties will have

access to their information. Over 40% of respondents

worry that their credit card data will be misused, and

14% find it too cumbersome to provide personal or

credit card information.

Addressing these concerns with safe, convenient

payment choices will lower these barriers to online

shopping and digital purchases.

14%

14%

20%

41%

51%

51%

54%

55%

0% 10% 20% 30% 40% 50% 60%

It is too cumbersome to log in and provide credit card information

It is too cumbersome to log in and provide personal information

I would prefer to use a more anonymous payment method (such as: cash, money order etc.)

Concern that my credit card data will be misused by the merchant

Concern that unauthorized parties will access my information saved in the merchant's database

Concern that my credit card data will be intercepted

Concern that my personal information will be sold to other merchants

Concern that the site will start sending me junk e‐mail

Percent of ConsumersN = 1113

Base: Active online shoppers(shopped in the past 90 days)


2.

Concerns among Those Shopping Online: Which of the following concerns do you have, if any, when making online digital purchases under $25?



Consumers are Frustrated With Payments Involving Credit Cards

Consumers also expressed significant frustrations with

having to use credit cards for small online purchases.

More than one‐third of the consumers worry that their

personal information would be intercepted while they

are providing their card details, and one‐third report

that they don’t like providing private financial

information online. Nearly one‐fifth of the respondents

find it annoying to provide credit card details for small

and frequent purchases.

In addition, among 18‐ to 44‐year‐old consumers, 12%

indicated they did not have a credit card or a debit card

available for online purchases, implying these

consumers would not be able to transact online unless

alternative payment solutions, such as mobile carrier

billing options, were available. This finding opens up a

great opportunity for merchants who could expand the

size of their addressable market. If they offered

alternative non‐card payment solutions, they could

alleviate these consumers’ frustrations by promoting

safer and easier payment options.

2A combined rank was generated based on scores: Rank 1=1, Rank 2=0.5 and Rank 3=0.33.

Privacy and security are the leading frustrations for most consumers because they don’t like providing personal financial information and are concerned this information could be intercepted.

6%

6%

7%

7%

7%

16%

18%

19%

22%

32%

38%

0% 5% 10% 15% 20% 25% 30% 35% 40%

It's a hassle to pull out my wallet

The ordering and checkout process is too complex

It's too hard to enter payment information on my phone using my phone's keypad

It takes too long to checkout

I cannot defer payment using a debit card because money is withdrawn immediately.

I don't like to use my credit card for these small online frequent purchases

I have to remember a login, password or have to sign in to purchase

It is annoying to enter my payment information repeatedly for small and frequent purchases

I don't like to accumulate debt

I worry that my personal‐ financial information could be intercepted over the air when I enter it using my phone

I don't like the idea of providing private or personal financial information

N =1289Base: Among those who reported any frustrations


Percent of Consumers

3.

Frustrations Reported by Consumers: Please rank your top 3 frustrations when using credit cards to make online digital purchases under $25.2



Additional Simple and Secure Payment Options Can Drive an Average Spending Increase of Nearly $100 per Month and $1,200 per Year

Sizeable incremental revenue opportunities are available on a consumer‐by‐consumer basis for merchants who offer safe and convenient alternatives to credit and debit cards.

Online merchants could realize between $43 and $135

in average monthly incremental revenue per consumer

by simply introducing additional payment solutions,

enticing those who are skeptical about privacy and

security issues related to using credit or debit cards and

accommodating those who don’t have access to

traditional payment mechanisms.

Consumers were asked how much more they would be

inclined to spend monthly with such alternative

payment options. Among those who indicated that

they would increase monthly spending, 42% stated that

the amount would be between $26 and $100 — a size‐

able increase. The low‐end figure per consumer is $43

and the high end is $135, with an average increase in

online spend close to $89 across multiple merchants.

For service providers and merchants with thousands of

visitors, this increase represents potentially billions in

incremental revenue. When the increase is projected to

the U.S online population, merchants could realize

aggregated yearly incremental revenue of

$109.8 billion.

14%

42%28%

14%

3%

$26‐$100$10‐$25

$26‐$100 More Than $500

Less Than $10$101‐$500

N = 1110Base: Those who would spend more with an

easier and safer online payment method© 2011 Javelin Strategy & Research

Additional Spending: If there were easier and more secure alternatives to using credit cards or debit cards, how much more would you purchase online per month using a computer, mobile phone or Smart‐phone?

4.



The Majority of Consumers Have Abandoned Online Purchases at Point of Payment, Costing Merchants Billions of Dollars

Merchants can reduce abandonment rates by providing additional payment options beyond credit cards.

Purchase abandonment at the point of payment or

even before is a major problem for merchants. A

majority of the consumers (61%) indicated that they

have abandoned the payment process while shopping

online using computers and mobile phones. Among

consumers who are more inclined to make online

digital purchases if they have more secure and easier

payment options, 65% have abandoned the checkout

process at the point of payment.

Among those who have shopped online and have

abandoned a payment process, many consumers cite

credit card‐related concerns, such as the possibility of

receiving junk e‐mail (53%), having their credit card

information intercepted (48%) or having their credit

card information misused by merchants (41%).

Addressing these concerns with viable alternative

non‐card payment choices, such as carrier billing

options that meet the security, convenience and

privacy needs of consumers, can reduce the number of

abandoned transactions and further drive revenue.

Have you ever canceled or abandoned your checkout process during an online purchase (using your desktop, laptop, mobile phone or Smartphone), when you had to enter payment information?

61%

39%

YES

NO

N =1503Base: Consumers who have ever made an

online purchase© 2011 Javelin Strategy & Research

5.



Security and Privacy Benefits Spur Consumers to New Forms of Payment

Consumers indicate fraud protection and privacy features as drivers for new forms of online payment.

Security and privacy are two important factors

compelling consumers to evaluate and use online

payment alternatives. When asked about their primary

motivations for using new forms of payment,

consumers selected security and privacy more than

twice as frequently as any other factor.

Merchants must not only reduce chances for actual

fraud to occur but must also continue to counter

consumers’ perceptions of the types and frequency of

online fraud. Secure payment substitutes that protect

consumers’ financial information and privacy can help

remove this key purchase barrier.

Communication about these payment methods can

help attract and convert the segment of consumers

withholding purchases solely due to safety and

confidentiality concerns.

Which of the following benefits might cause you to consider using a new form of payment on the Internet while making small digital purchases of under $25 online?

1%

19%

23%

24%

27%

27%

60%

60%

0% 10% 20% 30% 40% 50% 60% 70%

Other

Simplicity of charging to my mobile phone account with a simple text message verification

Ability to make payments at sites that do not accept credit or debit cards

Financial incentives

Integration with loyalty or rewards programs

Recommendation by a trusted provider such as my bank or credit union

Ability to keep identity private

Greater protection from fraud or other misuse

N =1100Base: Those who would spend more with an easier and

more secure payment methodNote: Excludes Those saying “nothing would persuade”


6.



Payment Options are Prime Factors Driving More Online Content Purchase

More secure and more convenient payment options are the overwhelming drivers in motivating consumers to buy more digital content services.

A majority of consumers stated that more secure, more

convenient or "no‐credit‐card‐required" payment

methods would be the most likely ways to get them to

make online content purchases. This preference was

highest in the 18‐ to 34‐year‐old segment, a prime

target of many digital service providers. In general, the

secure and “no‐credit‐card‐required” payment factors

were much more desirable than improved content and/

or affordable broadband services.

Digital providers and broadband providers can poten‐

tially benefit more from adjusting their payment strate‐

gies than from lowering their content fees. Once again,

payment options matter to digital content merchants

and service providers when merchants are delivering

value‐added services to consumers.

Which of the following would persuade you to make more content or small digital pur‐chases of under $25 online?

58%

45%

39%

25%22% 21%

3%

0%

10%

20%

30%

40%

50%

60%

70%

More secure payment options

"No Credit Card Required" options

Affordable content Improved Content Easier and more convenient

payment options

Affordable broadband services to enable faster downloads

Other

N =1879Base: All Consumers excluding those

saying “nothing would persuade”© 2011 Javelin Strategy & Research

7.



Four Times More Consumers View Using Carrier Billing As More Secure Than Loading Credit Card Information on a Phone

Compared to loading credit card information into the phone, mobile payments (direct to a carrier bill) is considered as more secure by four times more consumers.

When asked what payment method they found more

secure, four times more consumers viewed charging

small purchases to a phone bill as a more secure option

compared to the 7% who consider loading card data or

bank information on the phone to be a secure option.

This trust is consistent among consumers who are more

inclined to make online purchases with easier and more

secure payment options; as almost four times more

consumers consider using mobile carrier billing more

secure compared to the 10% who consider loading card

or bank information on the phone. Because a majority

of the decisive consumers indicate they would increase

purchases if they had more secure payment options,

merchants could increase consumer visits and revenue

by including carrier billing as a payment tool on their

websites.

Which of the following do you think is more secure?

8.

7%

27%

0% 10% 20% 30%

Load Card or Bank Account Information on the Phone to Pay

Charge Purchases Directly to Phone Bill Via Text Message



Mobile Phone, Home Phone and Broadband Account Top Consumer Preferences for Charging Small Purchases

Nearly 80% of interested consumers choose mobile, home or broadband bill for charging small digital purchases.

When asked specifically to which existing bill they

would like to charge their small purchases, 78% of

those stating a preference chose a phone or broadband

bill — an overwhelming response. Further, nearly 6 in

10 consumers chose wireless phone bill as an option to

charge small digital purchases.

Given that 93% of U.S. adults carry mobile phones,

charging to a wireless bill is an easy method for

consumers to pay for digital goods and services, and it

does not require credit card data to be shared, loaded

or exposed digitally. The wireless bill is a logical and

intuitive instrument for consumers to charge small

purchases and also alleviates fraud concerns by

eliminating the need to put credit or debit card

information in the hands of the merchants.

A growing section of the population is already going

mobile to make certain type of payments; therefore,

merchants could easily promote charging payments to

mobile bills as an easy and secure alternative payment

solution.

As an alternative to using a credit or debit card online for small digital purchases (under $25) or apps for your phone, which of the following would you prefer the small purchases be billed to?

11%

11%

22%

56%

0% 10% 20% 30% 40% 50% 60%

Cable‐Dish TV bill

Utilities bill

Landline phone and Broadband bill

Wireless phone bill

N =748Base: Those that prefer to charge to a carrier bill



About 78% Would Prefer Phone or Broadband Billing Option

9.



Digital Purchases More Likely When “No‐Credit‐Card‐Required” Options are Offered

Consumers show a propensity to purchase more digital

services at sites that offer “no‐credit‐card‐required

payment options. The options could include adding the

purchase to a carrier bill, using a stored‐value account

or finding other alternatives to traditional credit or

debit card payment mechanisms. Nearly 6 in 10

consumers are more likely to visit and buy from such

websites. About 72% of those who are more inclined to

buy if they have secure and easier payment options are

more likely to buy more from websites promoting the

option of “no credit card required.”

It is interesting to note that certain demographic

groups have a high likelihood of buying online at

websites that don’t require a credit or a debit card.

About 62% of consumers 18 to 24 years old and 56% of

those with less than $50,000 in annual income are

more likely to visit and buy from such websites. Among

minority segments, the “no credit/debit card”

preference is higher. For example, over 69% of African‐

Americans and 68% of Hispanics indicated they would

be more likely to visit and buy from such websites.

Payment options matter to those who are buying

digital services or content online. By altering the

payments landscape to include mobile, digital content

merchants and service providers can grow revenue,

particularly by targeting certain demographic segments

as indicated above.

A majority of young and middle‐aged consumers are more likely to buy if "no credit card required" options are available.

62%

67%63%

56%52%

31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

18‐24 25‐34 35‐44 45‐54 55‐64 65+

N =2000Base: All Consumers


Age Groups

Responses by Age Groups If a website or online promotion indicated “no‐credit‐card‐required,” would you be more likely to buy digital services there?

10.


Conclusions

Key Points of Analysis

Javelin’s consumer payment survey clearly shows that

more secure and convenient payment solutions than

credit cards, such as mobile carrier billing, will drive

an increase in online purchases and extend

merchants’ reach to additional consumers.

The vast majority of consumers (79%) indicate that

their digital purchase activity would increase with

safer and more convenient payment options (vs.

credit/debit cards). Also, they would actually increase

their spending on digital goods by as much as $89 a

month on average per consumer. The opportunity

was even greater among middle and higher‐income

segments as well as consumers under 40 years of age.

Consumers’ concerns about credit card‐related fraud

and security remain a major barrier to online

purchasing and hinder a significant percentage of

online commerce. The majority of consumers have

abandoned transactions at or before checkout.

Additional payment options beyond credit cards, such

as mobile payments onto the carrier bill (no card

loading required), can be particularly effective in

decreasing transaction abandonment and allaying

fraud and privacy concerns. In addition, mobile

phones are ubiquitous and could enable over

5 billion3 consumers worldwide to be instant buyers

who can transact safely and securely through their

mobile phones.

Survey data indicates that the implementation of

these payment options can help both merchants and

operators to capture millions of potential dollars in

additional revenue. Because concerns about credit

card fraud and inconvenience are major issues

preventing digital commerce with consumers, content

providers must incorporate mobile and other

non‐credit‐card payment solutions in their overall

growth strategies. These companies should not

abandon card acceptance but rather augment

payment choices to reach and better serve additional

new customers.

Expansion of non‐credit‐card payment choices can

unlock substantial incremental revenue and

dramatically widen the potential audience, including

large and desirable segments of consumers who

either cannot or prefer not to use traditional credit or

debit cards online.

3http://www.bbc.co.uk/news/10569081, accessed Nov. 16, 2011.


Background and Methodology

Project Background

Javelin Strategy & Research conducted the 2011

Consumer Payment Preference Survey, an

independent survey and analysis of payment

preferences among U.S. consumers. Javelin gathered

the consumer information and provided analysis,

highlighting pertinent portions of data to provide an

objective understanding of consumers’ willingness to

purchase content online and attitudes about payment

preferences for content and other small‐value

purchases.

Methodology for Consumer Survey

Javelin Strategy & Research undertook the survey

on payment preferences in order to determine

consumers’ willingness to make purchases online,

their desire to make small value purchases online and

the attitudes that affect payment choices. The survey

was conducted in September 2011 among 2,000

consumers. The survey utilized a random–sample

survey using opt–in remunerated participants and

targeting respondents based on representative

proportions of gender, age, and income, as compared

to overall U.S. population. Although actual confidence

intervals vary per unique question and response, this

survey generally provides a margin of sampling error

of ±2 percentage points at the 95% confidence level.


Appendix

Figure 1: Survey Respondents by Content Interest Category

Consumers’ interest in purchasing online content and digital services over the Internet

What content or digital services, under $25, would you be interested in buying online?

9%12%12%14%

16%18%19%20%22%22%22%

26%28%

30%30%31%32%

41%45%

52%57%

0% 10% 20% 30% 40% 50% 60%

Other streaming video, movies, TV programs

Community and networking Dating, personals subscriptions

Facebook credits Online classified ads (Car ads or job opportunities)

Game credits News and investment services

Mobile content Android apps

Greeting cards Voice mail or text messaging services

Game subscriptions Apple apps

Console games (xBox, PlayStation, Nintendo) Online magazine and subscriptions

Computer support and security

Internet services like Wi‐Fi and premium e‐mailSecurity antivirus anti‐spam services, subscriptions

Software Netflix

Music

September 2011, n=1450Base: Those interested in buying digital content




Appendix (Continued)

Figure 2: Survey Respondents by Mobile Payment Experience

More Than 1 in 3 Consumers Use Mobile Devices to Make Payments

Have you used your mobile device (either by entering credit card/debit card information or by bill‐ing it to a carrier bill) to pay for any of the following…?

36%

64%

Never used mobile phone to make payments

Have used mobile phone to make payments

N = 1856Base: Those who personally use a mobile phone




Figure 4: Survey Respondents by Age

Figure 3: Survey Respondents by Gender

52%48%

FemaleMale

N = 2000Base: All Consumers


13%

18%

20%20%

14%

15%

18‐24

25‐34

35‐4445-54

55‐64

65 or Older





Figure 5: Survey Respondents by Last Online Purchase

Figure 6: Survey Respondents by Household Income

22%

22%

11%

10%

10%

25%

In the last 7 days

In the last 30 days

In the last 90 days

In the last 12 months

More than 12 months ago

Never



Online Shoppers in the last 12 months – 65%

17%

24%

33%

16%

11%Under $25,000

$25,000 ‐ $49,999

$50,000 ‐ $99,999

$100,000 ‐ $149,999

150,000 and Over

N = 1883Base: Those who reported their income


Please indicate the last time you personally made an online digital purchase for under $25.



Figure 7: Survey Respondents by Ethnicity

Figure 8: Survey Respondents by Technology Adoption

66%11%

14%

6%

2%

White/Caucasian

Black/African American

Hispanic

Asian

Other

N = 1988Base: Those who reported their ethnicity


19%

33%

44%

3%I am the first to try it

I wait for friends to try it before trying it myself

I will only try it after it has been available for a long

time and everyone is using it

I will never try it



2011 online-payment-poll

Economy & Finance