Table of Contents
Executive Summary
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- The market
- Digital wallets paving the way for a mobile-first path to purchase
- Biometrics is mainly a mobile technology but making headway on PCs
- PayPal acquires card reader company iZettle
- Voice-based payment platforms emerging but security concerns will be a sticking point
- AR in the buying process
- Companies and brands
- Sainsbury’s opens store with similarities to Amazon Go
- Google updates sponsored advertising in Search
- Tik Tok promotes hashtag trend to drive app-based commerce
- Instagram adds Checkout payment tool
- ASOS adds AR-based Virtual Catwalk to mobile app
- The consumer
- Laptops still the most common purchase platform
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- Figure 1: Devices used to make online payments, November 2019
- Figure 2: Devices to be used for future purchases, November 2019
- Online recommendations among the top ways to present a new product
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- Figure 3: Source of introduction for the product or service purchased, November 2019
- Over half of buyers use third-party payment service
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- Figure 4: Type of payment method used online, November 2019
- Mobile wallets most likely to be used for app payments
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- Figure 5: Type of payment made using a mobile wallet, November 2019
- Majority of consumers against using smartphones as contactless payments
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- Figure 6: Use of smartphones for contactless payments in-store, November 2019
- Nearly half of buyers prefer biometrics to password security
- Younger Millennials most likely to auto-fill card details and enable one-click purchasing
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- Figure 7: Attitudes towards convenience and security for online purchases, November 2019
- Almost two thirds of buyers concerned about security of voice control
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- Figure 8: Privacy concerns with smart speakers, November 2019
- Majority of buyers prefer to purchase products online than in-store
- Nearly 80% of Gen Z buyers research products with their smartphone in-store
- Over half of Gen Z and Younger Millennials prefer to use apps to shop than websites
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- Figure 9: Online and app-based shopping preferences, November 2019
- Over a quarter of buyers have accessed customer service through a messaging app
- Generation Z most likely to have used a chatbot in the buying process
- Buying through social media reasonably popular for Gen Z and Millennials
- A third of Millennial buyers have used AR to visualise potential purchases
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- Figure 10: Use of AR, chatbots and social media for online purchasing, November 2019
- What we think
Issues and Insights
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- Using mobile biometrics to support purchases on other devices
- The facts
- The implications
- Social networks could send tailored product notifications
- The facts
- The implications
Market Background – What You Need to Know
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- Digital wallets paving the way for a mobile-first path to purchase
- Biometrics is mainly a mobile technology but making headway on PCs
- PayPal acquires card reader company iZettle
- Voice-based payment platforms emerging but security concerns will be a sticking point
- AR in the buying process
Market Background
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- Digital wallets paving the way for a mobile-first path to purchase
- Biometrics is mainly a mobile technology but making headway on PCs
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- Figure 11: Touch ID on MacBook Pro 13-inch (2019)
- PayPal acquires card reader company iZettle
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- Figure 12: iZettle card reader
- Voice-based payment platforms emerging…
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- Figure 13: Ownership of static technology products, September 2019
- …but security concerns will be the sticking point
- AR in the buying process
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- Figure 14: Usage of AR applications, August 2019
Companies and Brands – What You Need to Know
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- Sainsbury’s opens store with similarities to Amazon Go
- Google updates sponsored advertising in Search
- Tik Tok promotes hashtag trend to drive app-based commerce
- Instagram adds Checkout payment tool
- ASOS adds AR-based Virtual Catwalk to mobile app
Launch Activity and Innovation
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- Sainsbury’s opens store with similarities to Amazon Go
- Google updates sponsored advertising in Search
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- Figure 15: Sponsored ads on Google Search
- Related product ads above YouTube videos
- Tik Tok promotes hashtag trend to drive app-based commerce
- Instagram adds Checkout payment tool
- NatWest adds voice banking functionality
- Amazon offers Alexa-based reminders for medication
- ASOS adds AR-based Virtual Catwalk to mobile app
The Consumer – What You Need to Know
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- Laptops still the most common purchase platform
- Majority of consumers against using smartphones as contactless payments
- Nearly half of buyers prefer biometrics to password security
- Almost two thirds of buyers concerned about security of voice control
- Majority of buyers prefer to purchase products online than in-store
- Over half of Gen Z and Younger Millennials prefer to use apps to shop than websites
- Over a quarter of buyers have accessed customer service through a messaging app
- A third of Millennial buyers have used AR to visualise potential purchases
Devices Used for Online Purchases
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- Laptops still the most common purchase platform
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- Figure 16: Devices used to make online payments, November 2019
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- Figure 17: Devices used to make online purchases, by generation, November 2019
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- Figure 18: Devices to be used for future purchases, November 2019
Product Discovery and Payment Method
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- Online recommendations among the top ways of discovering new products
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- Figure 19: Source of introduction for the product or service purchased, November 2019
- Over half of buyers use third-party payment services
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- Figure 20: Type of payment method used online, November 2019
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- Figure 21: Type of payment method used online, by generation, November 2019
- Mobile wallets most likely to be used for app payments
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- Figure 22: Type of payment made using a mobile wallet, November 2019
Smartphones and Contactless Payments
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- Youngest adults have embraced mobile contactless payments, but security concerns remain
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- Figure 23: Use of smartphones for contactless payments in-store, November 2019
- Figure 24: Use of smartphones for contactless payments in-store, by generation, November 2019
Convenience and Security for Online Payments
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- Nearly half of buyers prefer biometrics to passwords
- Biometrics seen as secure, despite the potential risks
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- Figure 25: Attitudes towards convenience and security for online purchases, November 2019
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- Figure 26: Preference for biometric authentication over passwords, by generation, November 2019
- Younger Millennials most likely to auto-fill card details and enable one-click purchasing
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- Figure 27: Agreement for websites to auto-fill card details, by generation, November 2019
- Figure 28: Use of one-click purchasing, by generation, November 2019
- Almost two thirds of buyers concerned about the security of voice control
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- Figure 29: Privacy concerns regarding smart speakers, by generation, November 2019
- Figure 30: Privacy concerns regarding smart speakers, by generation, November 2019
Attitudes Towards Online, App-Based and In-Store Purchasing
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- Majority of buyers prefer to purchase products online than in-store
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- Figure 31: Online and app-based shopping preferences, November 2019
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- Figure 32: Preference to buy products online compared to in-store, by generation, November 2019
- Nearly 80% of Gen Z buyers research products with their smartphone in-store
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- Figure 33: Use of smartphone to research items in-store, November 2019
- Over half of Gen Z and Younger Millennials prefer apps to websites
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- Figure 34: Preference for using apps to buy products compared to websites, November 2019
Usage of Social Media, AR and Chatbots in the Buying Process
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- Over a quarter of buyers have accessed customer service through messaging app
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- Figure 35: Use of AR, chatbots and social media for online purchasing, November 2019
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- Figure 36: Speaking to customer service via social media messaging, by generation, November 2019
- Generation Z most likely to have used a chatbot in the buying process
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- Figure 37: Use of chatbots when buying products, November 2019
- Buying through social media reasonably popular for Gen Z and Millennials
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- Figure 38: Use of social media apps to buy products, November 2019
- A third of Millennial buyers have used AR to visualise potential purchases
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- Figure 39: Use of AR during buying process, November 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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