1. Consumer Expectations and the
Great Transition: Understanding
What Consumers Really Want In
Payments
Jill Gonzalez
Bank of the West, Senior Vice President of the Card Services Division
Shelly Belvill
Vice President, First Data
Christopher Bumcrot
Partner, Applied Research & Consulting LLC

2. Copyright 2013 First Data Corporation. All Rights Reserved.
This document contains unpublished, confidential and proprietary
information of First Data Corporation. You may not disclose, copy or
use any part of these materials for any purpose without the express
written consent of First Data Corporation. All trademarks, service
marks and trade names used in this material are the property of their
respective owners.
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3. PAUSE: Smart Phone Addiction!
What do you do first thing when
you wake up in the morning?
25%
20% 16%
11%
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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4. Approach
CLIENT CONSUMER
EMPATHY EMPATHY
UNDERSTANDING INNOVATION
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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5. What Works?
MUST BE
PERCEIVED
EASY
AS SECURE
TO USE
PROVIDE A BENEFIT
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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6. Wave 2
FIRST DATA
UNIVERSAL COMMERCE
CONSUMER TRACKER
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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7. Ever Wonder…
How are real consumers
dealing with all
the changes happening US TOO.
in payments and money
management?
That’s why we’ve been doing
some very interesting research to get
into the lives of our target audience.
60 consumers…
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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8. EARLY TECH ADOPTERS &
SAVVY SHOPPERS
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.

9. …Used a Clever Little Tool
• Who they are & what they’re about
Called OVER THE SHOULDER
• Their personal approaches to
to ride along with them on their interacting with money
smartphones for • The ‘tools’ they use during their day
• How they pay for things & think
2 weeks to see… about money
Then they joined us in person…
Make a 60-second
video that shows us
your diagram,
explains why you
sketched it together
the way you did, and
how you FEEL about
plus we refreshed our quant data it.
to support what we found
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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10. The Skinny…
• ON = OFF
– Consumers blur online and offline shopping and banking.
• BEYOND THE TRANSACTION
– They want more than just a transaction. They want an experience –
to be recognized for their loyalty, to have a personalized experience,
to best utilize their time (in and out) and to get a good deal.
• CONTROL ISSUES
– Consumers actively manage their money and expect real-time information
wherever, whenever.
• MOBILE TIPPING POINT?
– Mobile’s role in shopping and banking continues to increase,
as do the expectations.
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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11. OFF = ON
38% 21%
Want Want to start
seamless online or offline
experiences and finish on the
other… easily!
55% 64% 41% 12%
Use smartphone Have retailer apps Received Remote deposit
in-store to on phone; eReceipt from checks sometimes
comparison typically use in-store or frequently
shop <4 frequently purchase
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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12. OFF = ON
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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13. Beyond the Transaction
• Let’s Make a Deal
• Like Me Back
• Know Me
• Make it Easy
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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14. Let’s Make a Deal
APPROXIMATELY 1/2 SEEK A GOOD DEAL
• Active coupons/deal user
(54% of smartphone users)
• 33% receive coupons/offers
near store today…
• BUT 56% want to receive
offers/coupons on phone
near store
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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15. Like Me Back
81%
Carry 2+ loyalty/rewards cards
43%
Banks should reward/
recognize me
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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16. Know Me
64%
Expect bank to consider my
circumstances
44% 40%
Expect bank to offer products/ Want tailored ads/offers
services to match lifestyle
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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17. Make it Easy
55%
My time is valuable – speed up
shopping and checkout
47% 50%
New technologies should empower me If technology is not easy the first
to be a savvier shopper time, I stop using!
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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18. Control Issues
81% 82%
Expect real time access Expect online banking
32% Expect app
47%
Use bank app on smartphone
55% 18-34 year olds
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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19. Control Issues
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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20. MOBILE TIPPING POINT?
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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21. 5 in 10 Smart Phone Owners
Use Mobile Phone to Make Purchases
s
28% Interest in Mobile Wallet
(up from 19% March ‘12)
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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22. Mobile Wallet Security Concerns
Remain the Same from Wave 1
5% 17% 77% 1%
Not Concerned Neutral Concerned Don’t Know
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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23. Mobile Wallet Security Concerns
Remain the Same from Wave 1
72%
Payment info could be stolen by
59%
Worry about losing their phone
someone hacking into phone with payment information
Interesting: Millennials also worry about security – but as savvier phone users
also worry about everyday technical glitches
56%
Millennials concerned they might
54% Don’t Know
Concerned their battery might die
not have a strong enough signal to when they need to make a
complete a purchase payment
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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24. Bottom Line…
Whether you are a bank,
a store, small or large…
CONSUMER expectations
continue to increase and
across industries
Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.
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25. WE BELIEVE OPPORTUNITY IS IN
UNDERSTANDING
THE OPPORTUNITY IS OURS
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