1. Innovation and the online payment realm A market study
Submitted to MasterCard
April 2013

2. Background Research problem:
The purpose of this study is to examine issues related to innovations in the online payment domain.
Research questions:
Online purchases (e-commerce) conducting in Israeli and around the world websites.
Barriers to conducting online purchase.
What is perceived as innovation in the online payments domain, including:
Awareness to online payments.
Products and services that can be paid for by an online payment.
What kind of products or services costumers would like to pay for by using online payments.

3. Method
In order to address the research questions, an internet study was conducted among:
A representative sample of 505 participants at the age of 18 and above who have a smart-phone. The maximum sampling error in this survey is +/- 4.5%.
Data were collected during the last week of March and the first week of April 2013 via internet consumers panel.
A sample of 23 participants from the innovation conference*.
* The results of this part should be looked at cautiously due to the extremely low response rate.

4. Findings

5. Internet Respondents (main sample)

6. Have you purchased a product or a service using a mobile phone in the last six months?
About two thirds of the respondents had purchased products or services using their mobile phones in the last months
Relatively more respondents from the age or having academic education

7. How many times have you purchased a product or a service by using a mobile phone during the last six months?
More than 2 thirds of the respondents (about 43% of the population) purchased a product or a service 1-4 times using their mobile phones during the past 6 months

8. Why haven‘t you purchased products or services using your mobile phone?
The main reason for not executing a purchase via mobile phone, which mentioned by a quarter of the respondents, is for privacy reasons. A similar percentage indicated that they hadn't had a reason or felt the need to purchase in this way
* The full list appears in the appendices

9. What products or services have you purchased by a website designed for mobile phones or by mobile phones application, during the last 6 months?
About a third of the respondents had paid for parking or coupons by their mobile phones
Relatively more respondents of the age and 65+, and respondents with academic education
* The total exceeds 100% since multiple response was an option

10. Indicate the degree to which each of the following factors can enhance your intention to purchase products and services by using a mobile phone
Most of the examined attributes were perceived to be significant to enhance intention to purchase by using mobile phones. user friendly is the most important factor
Mean
4.6***
88.9%
4.4*
84.8%
4.4*
81.0%
4.3*
78.8%
4.2*
78.3%
3.3
45.9%
*Indicates that the average is significantly higher than the lowest average (marked in red)
n=505

11. Relatively, more respondents with academic education
Which of the following factors would increase the feasibility of using your mobile phone for the purpose of carrying out a purchase?
Discount is the main factor that would increase feasibility of using mobile phones when carrying out a purchase
Relatively, more respondents with academic education
* The total exceeds 100% since multiple response was an option

12. Conference participants*
* Due to the small number of respondents to this section (n=23), these results should be looked at cautiously

13. Have you purchased a product or a service using a mobile phone?

14. How many times have you purchased a product or a service by using a mobile phone during the last six months?
n=19

15. Why haven‘t you purchased products or services using your mobile phone?

16. What products or services have you purchased by a website designed for mobile phones or by mobile phones application, during the last 6 months?
The total exceeds 23 respondents since it was possible to give more than one answer

17. Indicate the degree to which each of the following factors can enhance your intention to purchase products and services by using a mobile phone
Mean
4.7
4.5
4.2
3.6
3.3
2.1
n=23

18. Which of the following factors would increase the feasibility of using your mobile phone when making a purchase?
The total exceeds 23 respondents since it was possible to give more than one answer

19. Demographics of the
Internet respondents

20. Sample distribution by gender.

21. Sample age distribution.

22. Sample distribution by education.

23. Sample distribution by Family status.

24. Sample distribution by religion.

25. Sample distribution by income.

26. conference participants
Demographics of
conference participants

27. Sample distribution by gender.

28. Sample age distribution.

29. Sample distribution by education.

30. Sample distribution by family status.

31. Sample distribution by religion.

32. Sample distribution by income.