Interesting findings about Romania in the latest ING international online research related to mobile banking. We are by far number one in using „Pay on delivery” as a method to pay for online shopping out of 15 countries compared in the report. Also, Romania is the only country with the lowest percent (9%) of people who declared that „I would never use my bank’s app” to pay for goods or services in the next six months, either in store or online.
More people than ever are using their mobile phones to shop, yet ING research shows that when it comes to paying, they aren’t quite ready to give up on banks yet. „Despite having more providers to choose from, 58% of Europeans prefer to use their own bank for their money services.”, according to the press release.
One in five Europeans has used another provider to transfer money (to pay for goods or services) in the past 12 months. When it comes to other financial services the majority stick to their own bank. Only 15% have used another provider’s app to make a peer-to-peer payment (for example to split a bill with friends), and even fewer (9%) have gone elsewhere for a loan.
The shares who “only use their main bank” for a range of money services are highest in Luxembourg (76%) and Belgium (73%), lowest in Turkey (50%), Germany (54%) and Poland (54%). So, those that do look beyond traditional banks are most likely to be in Turkey, Germany or Poland. Romania is closest to the European consumer.
The ING International Survey of mobile money trends in Europe, the US and Australia questioned around 15,000 people in 15 countries. It found that smartphones are changing the way people shop, with roughly two out of three people buying items online at least monthly or even weekly. In the UK and US, 16% of people make online purchases even more frequently than once a week.
Tech giants not so big in payments
When it comes to paying for these purchases, 42% use their bank cards; 32% use payments service PayPal, 11% use a local payments app and another 11% pay on delivery (using either cards or cash). While the big tech companies like Apple, Google and Amazon all offer their own payment services, each of these accounts for only one percent of transactions in Europe and not much more in the US.
Facebook is the least popular choice, with 52% of Europeans saying they would ‘never’ use it to pay for goods or services. At the time of the survey (in March/April 20108) Facebook was being criticised for leaking personal data to third parties.
Why go beyond banking?
Thirteen percent have gone beyond their bank to access further digital banking services. Results are similar in the USA and Australia.
When asked, many people say they want an ability to make payments any time, and to increase the convenience of their transactions. Others say they want to manage their money independently, or get a single view of their finances (perhaps with a mobile app not available from their primary bank).
When it comes to payments, whether online or in a store, people in all countries are taking a diverse approach to how they pay. The share of physical cash payments in-store is still relatively high, with card payments leading for online, but growing numbers are taking advantage of a range of mobile technologies, from apps that are available in several countries, like Twyp or Boon, to local interbank solutions such as the Netherlands’ iDeal.
Traditional shoppers
At the other end of the scale, four percent of Europeans never shop online. More than half of these say they prefer to actually see what they’re buying rather than rely on a digital image; others like the social side of shopping. Security fears and waiting for deliveries, or not having a reliable delivery service, are other reasons for not shopping online.
Those who visit physical stores tend to pay with cash (32%), credit card (31%) or debit card (29%).
Convenience and availability, as well as the absence of fees, comfort with security and device compatibility are all contributing to the increasing popularity of online banking. Another contributor is the rise of automated payments that require no action from the consumer, for instance direct debits to settle monthly bills.
Cards first, then PayPal
For online transactions, the proportions are 42% credit or debit cards, 32% PayPal, 11% pay-on-delivery and 11% a wide range of local payment methods. High shares cite convenience, availability, absence of fees, help managing their money, comfort with security and device compatibility as the key reasons for adopting mobile transactions.
Only 13% in Europe say they “would never use” PayPal, one of the most established online payment methods. Just five percent say this in Italy.
Of those who say they would not use any of the seven suggested digital ways to pay, 44% say “I always have my card or cash with me anyway”. Forty-two percent say they do not see any added value compared to the payment methods they currently use.
Romania is by far the champion when it comes to use „Paying on delivery” (46%) as a method of paying when shopping online. The next places are taken by Czeck Republic (37%), Belgium (25%) and Turkey (24%).
Read the full report: ING International Survey Mobile Banking
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
