Mobile wallet technology is here, but are Canadians eager to adopt this new platform? Join the team at Environics Research Group for an in-depth look at consumer perceptions of new mobile payment solutions, and learn how to leverage insights from our multi-modal digital research. John Crockett, Vice President – Digital Innovation & Data Management will demonstrate how triangulating consumer opinion through social media monitoring, quantitative surveys, and online qualitative research activities can deliver richer, clearer answers to your market research questions.

1. Is Canada Ready for
Mobile Wallet?
Environics Research Group
Tuesday November 20th , 2012

2. Industry Players are ready, are we?

3. Familiarity with Mobile Wallet is Low …
Familiarity with the concept of Mobile Wallet
Very Familiar Somewhat Familiar Somewhat Unfamiliar Not at all Familiar
Total (n=1004) 7% 19% 17% 57%
Feature Phone
3% 14% 19% 63%
Users
Smart Phone
12% 25% 17% 47%
Users
A1: How familiar are you with the term ‘mobile wallet”? n=1004

4. Appetite for Adoption Varies
Total Smart Phone Feature Phone
(n=1,004) (n=516) (n=591)
36% 51% 26% TOP 2 BOX
---- ---- ---- ------------------------
12% 11% 13% Unsure – Need
More Information
16%
Very likely
10%
5%
35%
26% 21%
Somewhat likely
19% 15% 21%
22% Not very likely
33%
40%
Not at all likely
1. If mobile wallet technology was available today, how likely would you be to use it to make purchases at retail stores?

5. Canadian Values And Technology
High Enthusiasm for Technology
Enthusiasm for
Technology
Male Gen Y
• A favourable bias toward technology. A
tendency to be fascinated with the New Canadians
possibilities offered by modern
technology; to believe that technology is
the best tool for facing today’s world, Female Gen Y
one that helps us adapt and respond to
the demands of daily life. Male Boomers
• People who are strong on this trend
have great confidence that science and
technology can better their lives.
Female Boomers
Low Enthusiasm for Technology

6. Can-Asian Gen Y will act as an Influence
Spear for New Technology in Canada
I am excited by the possibilities presented by new
technologies (Gen Y: 15 to 29)
62%
54% 52%
50%
44%
White Chinese South Asian Immigrant Immigrant South
Chinese Asian
Canadian Born Foreign Born

7. Mobile is Personal
If I forgot my phone at home, I'd feel completely NAKED! … to be honest, if I
realized before I was too far, I would likely go back home to get it.
If I forgot my cell phone and had to carry on my day I would be somewhat nervous
and apprehensive because of not knowing if someone was calling or texting me. I
would find it hard to concentrate on my work.
If I forgot my phone at home, I'd be so lost …it is my watch so I would probably be
late for everything. I would constantly be wondering what I'm missing out on
because I can't go on Facebook or check my email … I wouldn't be able to watch my
tv shows [at lunch]. I think I would skip the gym after work because I wouldn't
have my phone to listen to music”
I would like you pretend you forgot your mobile phone when you left the house this morning.
Tell me a bit about what the day would be like for you?

8. Methodology Overview
• A quantitative survey of n=1004 Canadian Mobile phone
customers (September 24 – 28, 2012)
• Bulletin Board Focus Groups with smartphone owners
(November 3-4)
• Ongoing Social Media Listening
– Wireless CSAT Syndicated Offering (Twitter)
– Blog scraping
– Facebook/Twitter monitoring

9. Pulse measurement via monitoring
Discussion around absence of
Google announces it is NFC in iPhone 5
canceling prepaid card
1162 Arrival of Nexus 7 reignites
debate about Apple vs.
941 Google and NFC adoption
788 785
754 746
656
540 515
Galaxy SIII Beacon SmartBoards?
Aug-30 Sep-04 Sep-09 Sep-14 Sep-19 Sep-24 Sep-29

10. Clear signals that Mobile Wallet is on the
minds of consumers
1943
Rogers & CIBC announce
Rogers & CIBC roll out
mobile wallet plans
mobile wallet offering
1476
iPhone 5 data plans announced
1112
May-13 Jun-17 Jul-22 Aug-26 Sep-30 Nov-04

11. Reactions to Rogers/CIBC in BBFG
“I am more inclined to use an app knowing that my personal information is being
secured by an actual bank. I trust it solely because of the brand itself. In comparison
to the Google wallet app, I would have to say I'm more likely to use the CIBC/Rogers
app, the names make it seem more trustworthy.”
- Female, 20 years old
“I do not know if I trust them as much as Google, or believe that they are as
competent as Google in getting this off the ground without glitches.”
- Male, 55 years old
“Whether you are the first or the fifth to launch a new program, giving your
customers the access [to new features] is certainly beneficial. At the same time, it
obviously isn't appealing when whichever company you are loyal to is consistently
following trends and late to react in comparison …”
- Male, 21 years old
6. So many of you saw the news last night that Rogers and CIBC have launched their own Mobile Payment system.
How does this change your perception of these brands? Do you see them as leaders because they were the first ones out
of the gate? Or are they taking a risk with their customers sensitive information? What are your thoughts about the
Rogers/CIBC application compared to what you saw about the Google Wallet approach?

12. Who Should Lead mCommerce?
Companies Leading Implementation of Mobile Wallet Technology
37%
34% “I believe the banks will ensure security, the
carriers and the others will make sure it
works and is simple to use.”
Perceived
18%19% Ideal
14%
12% 11%
8% 9% 8%
6% 5%
A5:Based on what you have heard about mobile wallet technology, what company or companies do you believe are driving
the implementation of this new technology in Canada? (excluding DK/NA n=1304)
A6: Based on your understanding of mobile wallet technology what company or companies would you like to see drive
mobile wallet implementation in Canada? (excluding DK/NA n=1101)

13. So, Are We Ready?
22%
We're Ready! (Now or next year) 25%
34%
13%
We'll be ready soon! (2-3 years) 42%
46%
Experts and Enthusiasts (n=50)
24%
Still a ways to go! (4 years or more) 33% Feature phone users (n=591)
21%
Smartphone users (n = 516)
When do you see this technology becoming commonplace?

14. Blogger Typology
Expert – not ready Laymen – not ready
Expert – Ready! Laymen – Ready!

15. Are Canadians Ready?
1. Yes, we’re ready!
2. No, we still have a ways to go!
3. We’ll be ready soon!

16. Are Canadians Ready for
Mobile Wallet?
We’re Ready!

17. Mobile Wallet is Already Here!
Q. Do you own a mobile wallet?
n=1,004
Yes, 5%
No, 87%
Not
sure, 8%

18. …But Still Far Behind Other Markets
Have used Smartphone for online purchases
46%
40%
11%
Source - http://www.worldpay.com/globalshopper/mrc-report-shopper.pdf

19. Mobile Wallet ‘Light’ – QR Codes
Well.ca Virtual Store
“…another example of how
the line between store-based
and online retailing is
becoming increasingly less
defined. ”

20. Mobile Wallet ‘Light’ - Parking
“Mobile payments for parking meters means that
you can re-up your parking time from the
restaurant. You’ll be notified when your time is
running short. You’ll have an easier time
following the rules and in the long run everyone
will win.”

21. Mobile Wallet ‘Light’ –Transit Payments
“For transit agencies who don’t want
to issue their own fare cards,
moving to open payment reduces
the need to procure, encode,
distribute, and support literally
millions of magnetic tickets or
contactless smart cards.”

22. Are Canadians Ready for
Mobile Wallet?
We Still Have A Ways
to Go!

23. Security Concerns - Blogs
Expert - Canada is not ready Enthusiast - Canada is not ready
 Significant security concerns with  Fear that people will be able to steal
software and hardware on phones. money without any physical contact, by
having their phone chips scanned.
 Concern that people will throw their
phones away with critical security  "As mobile payment systems are
information still in the SIM card. increasingly gaining more momentum,
you may not want to stand too close to
 “[NFC] certainly increases the risk Charlie Miller or other hackers of his
that something could go wrong.” caliber."
 "I think of the mobile wallet and NFC
technology which still has not taken off
because it just isn’t any better than a
credit card in the user experience."

24. Security Concerns Haven’t Been Addressed
Most important feature for mobile payment app
(n= 1,004)
Security of credit/debit card information 49%
Security of transactions 36%
Ease of Use 5%
Integration with my financial institution 3%
Availability of merchant locations to use this technology 2%
A single application to hold all accounts, "one wallet" concept 2%
Compatibility with different brands of smartphone 1%
Transferability of my "mobile wallet" to other devices 1%
Capability of logging into different "mobile wallet" accounts 1%
Q3A Pretend for a moment that this new technology was available to you via your mobile phone. How important would each of the
following features/functions be when considering whether or not you would use it?

25. Overcoming Security Concerns - BBFG
I would definitely need assurances from the credit card companies and mobile wallet
that transactions are legitimately tracked and the owner is the only one able to use it.
- Male, 29 years old
I would be slightly concerned but I currently have the BMO mobile app which I use on a
regular basis. Piece of mind comes from a BMO disclaimer about righting any wrong
that occurs while using internet banking. I think i would wait a while before I started
using this app just to wait until they have worked out all the kinks.
- Female, 31 years old
“they [could] limit the credit ceiling for mobile apps to a significantly lower amount
[than what you could do with your card]. It would also help if there was extra security
protocol other than pin numbers.
- Female, 22 years old

26. Overcoming Security Concerns - BBFG
There is always concern for theft, especially involving items of high value. Obviously I
would be more concerned about a $200 boarding pass than a $2 coupon for coffee or
something, but its nice to know that even that $2 coupon is relatively secured within
the app you're using … it would be unnerving having multiple people you may not
know, knowing you and your personal information.
- Male 21 years old
I'm personally not overly concerned with mobile wallet. Been using online payment
services such as PayPal, EMT, and phone apps before without issues so I'm sure the
providers would address all the issues of security before launching such a
service…People used to be skeptical about online banking and such, but it's now just
common practice.
- Male, 32 years old

27. How to overcome security concerns?
Ways to encourage mobile wallet use
(n= 1,004)
Fraud protection or zero liability 67%
Offered by a vendor or
financial institution that I trust 47%
If the government created laws or standards on
security in using mobile wallet technology 45%
If most, or all merchants offered this technology
to be used at their location 36%
If most, or all of the vendors that I currently have
a ‘plastic’ card with migrate to mobile 30%
If a financial incentive is offered/
if it's free 1%
Nothing 22%
Q4 Which of the following would encourage you to use this technology, if any?

28. Experts – Overcoming security concern
If they want to speed adoption of mobile wallets, they´re going to have to
demonstrate users´ security concerns have been addressed. Prove that …
– man in the middle attacks can’t happen
– when my phone is lost or stolen that there is a procedure in place to
prevent me being stuck paying charges (zero liability)
– when I walk by someone in the midst of a transaction, that my phone
won’t be the one that pays for the other person’s goods
– when the merchant retailer´s mobile wallet technology doesn´t accept my
phone, that I won´t have to leave empty handed. That´d be especially
problematic (and embarrassing) in a restaurant, for example.
- Dave Chappell, IT/Security Blogger
http://securebuzz.ca

29. Are Canadians Ready for
Mobile Wallet?
We’ll Be Ready Soon!

30. When does mCommerce go mainstream?
“Mobile wallet payments have to offer significant
advantages over cash, credit card, or debit card in order to
be accepted. This could be point programs or emailed
receipts or actually making the checkout process faster.”
- Greg Lam, Small Business Blogger
http://www.smallbusinessdoer.com/

31. Loyalty Cards and Coupons are the key to
driving adoption
TOTAL
(n= 1004)
Loyalty Reward Cards… 45%
Coupons 34%
VISA/Mastercard/… 32% “I'm less concerned about the left of my loyalty
Banking/DEBIT Cards 29%
cards, coupons, etc because most don't have
threatening information loaded to them.”
Gift Cards 28%
- Female, 27 years old
Membership Cards 28%
“ Anyone can find out your address by
Boarding Passes 18% looking you up on Canada 411 and if you
Prepaid VISA 6% have a Facebook account your personal life is
All of the above 20%
out there. So no I'm not concerned about
theft of my personal information.”
None of the above 23%
- Female, 53 years old
Q6 Say you had the following cards in your physical wallet. Which, if any would you ‘migrate’ over to your mobile wallet (meaning
you would have it on your smartphone in addition to a physical card)?

32. When does mCommerce Go Mainstream?
• When consumers understand added value
• added efficiency
• new opportunities (mobile only offers)
• Lessons learned from QR codes
• Biggest opportunities with routine behaviours
such as transportation/parking, QSR, everyday
activities

33. Methodological Learning
• Be Flexible
• Be Specific
• Be Open-minded
• Explore – Test – Confirm – Monitor

34. Thank You! Questions?
John Crockett, CMRP
Vice President, Digital Innovation & Data Management
john.crockett@environics.ca