Enabling Technologies

Mobile Payments Opportunity in UK Based on Analysis of Historical Data

MEDICIFounder and Chief Strategy & Innovation Officer

 Did you want to know the answers to certain burning questions?

  • What is the correlation between non cash instruments and mobile payments?
  • When people move from cash to credit cards and then debit cards, what is the roadmap to mobile payments?

We analyzed 107 months of card data in UK which has more than 300,000 data points.

Credit and debit card volume trends in UK

chart1

Source: Knowledgefaber Analytics

It has been estimated that the total mobile payment transaction value in the UK was $1.35 billion in 2014 and would rise steadily to $4.34 billion by 2018.

chart2

Source: Multiple survey results

Nearly half of Paym payments (49%) are made on Fridays, Saturdays or Sundays, with the most popular items purchased including food, cinema tickets and petrol. The Paym service is used most frequently during the hours of 6pm to 9pm in the evening.

Deloitte’s mobile consumer report, 2014 also shows that there is a possible correlation in the groceries sector, because 16% of users of mobile payments in UK plan to use it in grocery stores.

Only major sectors have been included, so the numbers do not add up to 100%.

Source: Knowledgefaber Analytics and Paym study

It is evident from the above charts that mobile payments is more appealing to affluent young users, who spend more time on entertainment & restaurants. Therefore, LTP believes that the shift from cards to mobile payments, which will be driven by young users, will be higher in the Entertainment and Food & restaurant sectors.

Percentage of monthly spending

Source: Bain Online survey

A Bain survey also shows that a mobile payment user conducts more transactions through credit cards as compared to an average user. This essentially means that when there will be a shift from cards to mobile payments, it will be reflected more in sectors where there are more credit card transactions.

Credit card transactions in UK by sectors (2014)

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Amit Goel

MEDICIFounder and Chief Strategy & Innovation Officer

“Amit Goel is the Founder & Chief Strategy & Innovation Officer for MEDICI. Amit’s vision is to build a strong FinTech market network that involves financial institutions, banks, startups, investors, analysts & other key stakeholders across the ecosystem – helping each one of them in a meaningful way by removing the asymmetry of information and providing a platform to engage & transact.\ \ Amit is passionate about bringing actionable FinTech-focused insights, innovative products & services for the FinTech ecosystem. Some of his work involves startup scores, bank scores/assessments, predictive viewpoints & other innovations that have helped MEDICI’s customers and the ecosystem. He has been named amongst the Top 100 FinTech thought leaders/influencers in the world & Top 10 in Asia multiple times by reputed agencies, consulting firms as well as financial institutions. Amit has built MEDICI (formerly LTP) as a new-age, tech-enabled advisory/research firm, which is now considered the #1 global research & innovation platform for FinTech in the world.\ \ Amit has been writing pioneering viewpoints on financial technology space that have been ahead of the curve since 2010. His data-driven predictions have helped the customers as well as the ecosystem. His past work experience includes a strong background in strategy & market analysis and advisory to clients (from big business houses to Fortune 500 firms) in payments, commerce, financial services & IT/technology. In the past, Amit had also founded a successful consulting & research practice called GrowthPraxis and has worked at Boston Analytics, Frost & Sullivan, and Daimler Chrysler in strategy & research.”