Consumers in China and India are more likely to reach for their phones to shop and pay.
Mobile payment usage in the Asia Pacific (APAC) region grew 30% in 2018 with 63% of consumers citing that their mobile device as their most important shopping tool, according to GfK’s latest FutureBuy report.
The spike in cashless mobile payments across the region was mainly attributed to the millennials, the firm said in a statement.
The report studied 11,000 online interviews conducted in July 2018 across 11 APAC markets to understand consumers’ shopping habits and behaviours across 18 products from packaged food and beverages to home appliances and wearables.
Over half or 54% of the region’s consumers prefered to use mobile payment when transacting online, whilst 55% said the same for transaction made in a physical store. In Singapore, shoppers who tended to use their phones for payment transactions online and in physical stores stood at 42% and 36%, respectively.
“Using cash as a payment method has declined 5% compared to a year ago, and we foresee a persistent downtrend in the coming years,” Karthik Venkatakrishnan, consumer insights lead for APAC at GfK, said. “On the other hand, the usage of mobile payments and online wallets will continue to pick up over time as consumers become increasingly comfortable and confident with this method, and ease up on their concerns towards personal information and security associated with credit cards.”
On average, over a third of APAC consumers surveyed said they preferred to shop on their smartphones, the report found. Consumers in China (45%) and India (42%) were more likely to reach for their phones when making purchases, whilst one in three shoppers in Singapore agreed with the statement.
In the region, apparel, toys and wearables came out as the top three most popular products purchased online with over 50% of consumers making such purchases in the past six months, the report revealed.
However, the FutureBuy report also revealed a significant difference in the type of products purchased using different devices. Whilst fast moving consumer goods are mainly bought through smartphones, larger items such as laptops and appliances were purchased using computers.
“Online shopping is growing rapidly at a global level as increasing number of consumers are realising and appreciating the many advantages it offers,” Venkatakrishnan said. “Largely driven by the deepening internet penetration rate across countries, the appeals of purchasing online boil down to lower prices, convenience and the availability of greater options.”
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