Research Report on Mobile Payment Market

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Zero Mass Foundation
Research Report on Mobile Payment Market
Mumbai February- March 2009

Submitted by: FUTURESCAPES 30th March 30, 2009

INDEX

Sections
      Executive Summary Background RBI Guidelines TRAI Guidelines Trends in Mobile Space The Research Objectives Methodology Target Segment Profile

Page Number
3-5 6-8 9 9-21 21-25 26-27

    

Questionnaire for Consumers Questionnaire for Merchants Research Findings Conclusions and Recommendations References and Bibliography

28-31 31-35 36-49 50-51 52

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Executive Summary
ZMF (Zero Mass Foundation) has entered into a business relationship with Mchek with a view to bring forth a transactional ecosystem, using Mchek application on Airtel SIMs. The aim of such a conjugation was to create a wide off-line merchant base, simultaneously identifying the dormant customer base and activate Mchek application on their mobile phones. Also, by encouraging a SIM swap on the customers who do not have the Mchek application on their SIMs. Since there was no previous analysis available to develop a concrete strategy owing to this nascent category, (based on transformational technologies) a detailed research was required to evaluate the category and it’s dynamic. The marketing research team identified 5 distinct groups within which the product needed to be rolled out. The purpose for the first leg of research was to develop a model that would give a generic guideline to market development and distinct properties of the two groups - namely Urban Poor and Urban Middle Class. Based on the research conducted the overall findings are as follow:

Customers Category
Frequency of spending statistics • • • • • • • • Daily & Twice a week - Grocery / Vegetables Monthly - Medicine, Gas, Electricity and Water Vegetables / Grocery - Rs. 500-1000 Medicine - up to Rs. 500 Gas - up to Rs. 500 Electricity - Rs. 500-1000 Water - up to Rs. 500 Neighbourhood Shop

Expenses per month (w.r.t most favoured choice)

Preferred location for purchase

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Availed mode of payment • • • • • • • • • • • Cash Users - Over 85% Airtel penetration - Lesser than 25% SIM cards purchased before September 2008 - over 58 % Willingness to swap SIM (Airtel users) - over 60% said NO Willingness to get new SIM (non-Airtel users) - over 55% said NO Awareness - over 40 % said Yes Interest - over 35% Too much technical - 38% Acceptability concerns - 26% Limited to Airtel - 24% Mobile phone statistics

About the concept

Perceived Barriers

Merchants Category
• • • • • • • • • Hindi followed by Gujarati and Marathi are preferred languages for communication Over 80% respondents use mobile phones and can use SMS service Family remains priority for 90% of the respondents Majority merchants have Average Sale in the range of Rs. 1000 - 5000 per day 46% of the respondents Refused to disclose their Monthly household income while those who did majorly fall in the range of Rs. 10000 - 20000 80% of the respondents have Bank accounts Acceptance of Credit / Debit cards is still conservative overall but in comparison, Urban Middle Class (Andheri & Bandra) respondents had better acceptance Only 30% of the merchants provide Cash Credit facility with an average payback time of One Week Better response was seen with merchants of Urban Poor segment when it comes to trying new concept for growth - 40%

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Major benefit triggers being:

Safe and Secure transaction followed by Easy transaction process • • • • • • ‘Customer Acceptability’ and ‘Merchants being ill equipped’ emerged as two top experiences dealing with new concepts Over 50% merchants liked the concept with better response in the Urban Middle Class segment While over 60% merchants were un-willing to try the concept “Too technical” being the most perceived barrier for not using the service 50% of the respondents aspire to Own a Shop in a few years...
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