Mobile shopping, payments and financial transactions are easy and convenient, with plenty of potential for growth in Switzerland
New options for providers and consumers?
Mobile devices, in particular smartphones, are generally an excellent option for digital shopping, payment and digital financial transactions, as consumers always have their device to hand and are very familiar with it.
However, mobile devices are still not the most popular for these services in Switzerland, as results of the Global Mobile Consumer Survey 2018 show.
In order for commercial advantages to be realised, the solution must be successfully implemented. Conversely, this offers the opportunity for companies to improve their image among customers. Mobile shopping, payment and financial transactions offer interesting growth areas for companies from the retail consumer goods and banking sectors. Many solutions are still comparatively new to the Swiss market, while existing ones often fail to exploit all the benefits offered by mobile devices.
Which are the most popular devices in Switzerland for digital shopping, payment and financial transactions?
Mobile shopping - only 30% of people use their mobile devices for shopping, while many more use them for browsing
When it comes to browsing shopping pages, smartphones and tablets have already superseded the laptop, however the laptop is the clear winner for mobile payments or mobile banking.
The younger the age group, the more popular smartphones and tablets are for this purpose, while the laptop and desktop become more important the older the customer age bracket.
The computer (laptop and desktop) is still the most popular device for making purchases for 61% of respondents. 30% prefer mobile devices. 37% get information about a product or service on their smartphone at least once a week. Gathering information online and buying offline is an often under estimated phenomenon because more than two thirds of customers use their mobile phone to get the information they want.
Although it is already common for people to gather information about products and services while on the move, the numbers making purchases on their phones is low. Only 13% do this at least once each week, while only about a third of this number investigate retail offers at least once a week using their mobile phones.
Smartphones blur the distinction between online and offline transactions. Whether we're at home, on the road or in the shop, we can always access information and price comparisons online. Retailers and manufacturers have to adjust to this, while at the same time trying to close the gaps in the purchasing and payment process. Seamless mobile shopping and payment must become more intuitive and attractive.
Konstantin von Radowitz, Head of Consumer & Industrial Products at Deloitte Switzerland
Frequency of shopping, payment and financial activities on the smartphone
Mobile payments - Switzerland is below the global average
Mobile payments remain at a lower level than mobile purchases. When shopping by smartphone, 71% of people use credit cards and 26% bank apps, while only 8% use apps from mobile payment systems.
The smartphone is used most commonly (42%) to pay for public transport tickets. The figure for parking and taxis is 21%. It is least used to pay in person in shops with only 2% of people using this option daily and 8% weekly.
Mobile payment solutions currently offer little advantage over card payments in terms of affordability or convenience.
Switzerland is thus below the global average, however mobile payments are more common in retail outlets in Switzerland than in some other European countries, such as Germany or France.
Mobile financial transactions – 65% of people are already willing to use mobile technology to complete their financial transactions.
The most common financial activity among smartphone users is checking their account balance. 6% check their account balance daily. Younger people are more likely to use the smartphone to check their account balance, while the desktop computer is more popular among older age groups.
Credit transfers to individuals are still a rarity. Although mobile payment solutions for peer-to-peer transactions have a clear advantage over traditional transfers, as they are much faster and more convenient, Switzerland is well behind the global average here.
Innovation only make sense if they benefit the customer. For example, it should be possible to complete even more complex processes - including the recruitment of new customers - on the smartphone. Only transparent, easy-to-understand and uncomplicated mobile solutions will increase customer loyalty and satisfaction.
Adam Stanford, Head of Financial Services Industry at Deloitte Switzerland