An international study of mobile usage: Using mobile devices for mobile transactions

1
An international study of mobile usageUsing
mobile devices for mobile transactions

• September 2008

2
Contents

• Introduction
• Terminology Used
• Market information (by country)
• Findings from focus groups
• Recommendations
• About the Authors

3
Introduction

• The International Usability Partners (IUP) are an
  international network of independent usability
  companies renowned for quality in user research.
• The IUP commissioned a study into using mobile
  devices for mobile transactions.

4
Objectives

• The study aimed

5
What was done?

• In each of the IUP countries the following
  research was carried out
• Exploration of the current mobile internet market
  and current usage(desk research)
• Two focus groups
• One with current users of mobile transactions
• One with non-users of mobile transactions

6
Contents

• Introduction
• Terminology Used
• Market information (by country)
• Findings from focus groups
• Recommendations
• About the Authors

7
Terminology Used
In defining use of mobile devices for mobile
transactions we used the following terminology

• Non-Users Users who do not carry out
  transactions from their mobile device
• Browsing Using the internet from a mobile device
  to access sites for information only. For
  example maps, news, cinema listings, sport
  results
• Transactions Using the internet from a mobile
  device to access sites where information or money
  is exchanged as opposed to simply browsing
  informationFor example buying goods or
  services, bidding on or posting auction items,
  subscribing to goods or services, transferring
  money between bank accounts, making SMS payments
  (such as paying for traffic charges via text
  message).
• Although writing emails falls under this
  definition, it was not the focus of this study.

8
Terminology Used (2)

• Mobile Banking Using the internet from a mobile
  device to carry out banking services, such as
  checking account balance, checking recent
  transactions (money in and out), making a
  transfer of cash, dealing in stocks shares.
• Mobile Buying Using the internet from a mobile
  device to purchase goods or services
• SMS Payments A type of mobile buying where users
  pay via their mobile device by sending a text
  message to a certain number. Charges appear on
  the users mobile phone bill.

Note All internet instances mentioned in this
report refer to when the internet is accessed
from a mobile phone (unless otherwise specified)
9
Contents

• Introduction
• Terminology used
• Market information (by country)
• Findings from focus groups
• Recommendations
• About the Authors

10
Market information All countries
Figures for Mobile Internet use by country -
according to a report published by Nielsen Mobile
Critical Mass report (July 2008) In Finland
the mobile internet usage penetration is
estimated to be 16 (FICORA, January 2008).
11
Market information - China
But phone usage is growing fast, creating a huge
market. By early 2008 China had 547 million
mobile phone users (The Inquirer). This compares
with 88 million in 2007 (Note 500,000,000 is
larger than the population of the EU)
Phone ownership and usage is not as widespread as
in Europe (approx 42 of population compared to
e.g. UK over 100 (Ofcom)). Handsets costs and
call charges are far higher, limiting percentage
of uptake.

• Mobile transaction users are most likely to be
  carried out by business people, white-collar
  employees who are young and fashionable. This
  group are well-educated city-dwellers and more
  open to new technologies.

Nearly 26 of revenue comes from non-voice
services including mobile internet (The Inquirer).
12
Market information - Finland
Mobile broadband subscriptions are the lowest in
Europe, as are mobile call and text rates
(FICORA, January 2008)

• 16 of Finns use the mobile internet. 17 think
  this will increase in the near future (FICORA,
  January 2008)

• The main reasons more mobile phone users do not
  use mobile internet are
• No need (64)
• Users dont know how to use services (18)
• Services are too expensive (16)
• Services are uninteresting (16) (FICORA,
  January 2008)

• SMS services are very well developed in Finland
  and are widely used. E.g. by 2003 55 of Helsinki
  tram tickets were purchased via SMS. (Digitoday,
  October 2003)

• Young people (15-24 year olds) are most likely to
  try out new services. Women are more critical of
  new services than men. (FICORA, January 2008)

13
Market information - France
Only 9 of French people would be happy to buy
goods and services via their mobile phones
33 of mobile users have used the mobile internet
before. For 15-24 year olds this increases to
60
Mobile internet users most often connect in
domestic settings (at home or friends houses).
Killing time on transport is also a favourite
context for use. The most popular times for going
online are during normal working hours
Current mobile users included banking and
purchasing in a list of mobile internet
activities predicted to grow in the future
14
Market information - Germany

• Whilst 62 of Germans own a web-enabled phone,
  only 13 actually use the internet from their
  mobile phones. One of the main barriers to use is
  high costs.

• Most popular services for mobile internet usage
• E-Mail (54 )
• News (44 )
• Weather Forecast (32 )
• Travel/Traffic Information (30 )
• Most common locations where people use mobile
  internet
• Airport, Train, Public Transport (64 )
• At work, at school (47 )
• On vacation (42 )
• At home (41 )

• Main reasons users do not use mobile internet
• No need (PC/Laptop is sufficient) (79 )
• Perceived high costs (71 )
• Small screens (39)
• Difficult navigation (22)

Sources Accenture.com - Forsa Institute June
2008 online panel with 2,043 people
15
Market information- Italy
MOBILE INTERNET ACTIVITIES (by popularity)

• Browsing/searching 51
• Financial or banking services 32
• Downloads 27
• Other 18
• Shopping 15
• Online games 11
• Auction tracking 6

• Italy referred to a study that included a
  survey of more than 2,500 mobile internet users
  (Europe Mobile Content Market What consumers
  want, June 2007).
• According to this study, Italy has the highest
  percentage of financial/ banking service users
  compared to other European countries, such as
  France, Germany, Spain or UK.

16
Market information- Spain

• As of 2007-2008, just 8-10 of mobile users in
  Spain access Internet through their mobile
  devices. (Telecommunications Market Commission,
  Spain, May, 2008). Nielsen (2008) report 10.8

• Intensive and average users of mobile devices in
  Spain represent 68 out of 50.7 million mobile
  device users

• Basic users make calls and use SMS(31)
• Average users calls, SMS, and other mobile
  phone features such as MMS, camera, mp3
  (50.9)
• Intensive users use almost all features
  included in smart phones and some use mobile
  internet (18.1)
• Telecommunications Market Commission, Spain, May,
  2008 Internet Mobile Services Project, dnx, 2007

17
Market information spotlight findings - UK
Amberlight carried out an online survey,
gathering 465 responses from mobile phone users,
with an average age of 27.5 years but 60 were
mobile internet users which supports the skew
towards younger users (as 13 of UK users are
mobile internet users Nielsen)
Of all the participating countries the UK has the
highest penetration of mobile internet use
(Nielsen Mobile 2008)
Survey respondents non-users gave reasons for
not using mobile internet as (in order of
importance) Perceived high cost No need to
use mobile internet Usability would be poor
Do not have access to mobile internet Did not
know about the mobile internet .
The Amberlight survey showed a male bias in
mobile internet usage (64 male). A male bias
exists in all countries according to Nielsen.
18
Contents

• Introduction
• Terminology used
• Market Information (by country)
• Findings from focus groups
• Recommendations
• About the Authors

19
Key Research Questions

• Users
• Current usage when, where and what
  transactions are used?
• Benefits of mobile transaction services
• Typical problems encountered when performing
  mobile transactions
• Non-users
• Reasons why this group do not use their phone
  for mobile transactions
• How they responded when observing a mobile
  transaction for the first time during the
  research sessions
• PC vs. Mobile
• Which platform do people prefer when it comes
  to performing internet transactions?
• Mobile banking services
• How do users non-users perceive mobile
  banking?

20

• Current users of mobile transaction services
  provided information on
• Context of use when and where
• Services often used
• Benefits of mobile transactions

21
Current users typical use
When and where is mobile internet used?
22
Current users typical use
Frequently used services
23
Summary of perceived benefits

• The main benefit of carrying out transactions
  using the mobile internet was convenience. Mobile
  internet is available when and wherever the user
  needs it.

Benefits of using mobile transactions (1)
24
Summary of perceived benefits
Benefits of using mobile transactions (2)
25
Summary of perceived benefits
Benefits of using mobile transactions (3)
26
Current users of mobile transaction services were
asked what were the typical problems they
encountered when carrying out transactions from
their mobile device
27
Current users typical problems of usage

• Current users in all countries identified a set
  of problems that closely matched the problems
  assumed to exist by non-users.

• 1. USABILITY
• HANDSET DESIGN
• Device is too small keyboard is fiddly to use,
  typing errors are common, screen size is
  inadequate

• WEBSITE DESIGN
• Sites accessed are rarely designed for mobile
  access. Resulting problems included
• Participants must scroll a lot to view page
  content. This is time consuming.
• Content is displayed in distorted or broken
  format (e.g. content missing)
• Pages are prone to timing out pages are too
  heavy for bandwidth
• When errors occur, error messages are absent or
  uninformative
• Inconsistent site experience between PC and
  mobile

28
Typical problems of usage

• 2. CONNECTIVITY
• In China, Italy and France, participants
  mentioned that unreliable mobile internet
  connections were a problem. For example in France
  participants were concerned that they would be
  unsure of the outcome of a financial transaction
  if the network dropped during the transaction.

• 3. SECURITY AND PRIVACY
• Various concerns about security existed
• Participants were concerned that using a mobile
  phone extensively in the street meant they
  risked having the device stolen
• For credit card transactions, participants also
  felt at risk from street crime
• In China, Italy and France, participants were
  also concerned about network security and whether
  it was safe to send sensitive personal and
  financial information (i.e. because of hacking).

29
Participants who do not currently use their phone
for mobile transactions were asked why this is
the case.
30
Non-users why are they non-users?

• The main reasons why non-users do not carry out
  mobile transactions were

• 1. COSTS
• Non-users did not know how much they will be
  charged for using mobile services nor whether
  charges will vary according to type of data used,
  frequency of use, time of access and so on. They
  assume costs will be high.

• 2. POTENTIAL USABILITY ISSUES
• Non-users held negative beliefs about the user
  experience, assuming small devices would provide
  a poor user experience. For example page download
  times would be very slow, scrolling would be
  excessive, screen size would make content
  unreadable.

3. SECURITY PRIVACY CONCERNS Non-users had
various concerns about the security of
transactions including fears of mobile viruses
and personal info being stolen during
transactions. In Germany UK participants had
concerns about entering personal information in
public where it could easily be seen by others.
31
Non-users why are they non-users?

• 4. CONNECTIVITY
• Non-users expected connectivity to be poor and
  unreliable, making transactions difficult to
  complete.

• 5. LACK OF GENUINE NEED
• In all countries except China non-users felt they
  had no genuine need to use their phones for
  internet access. This was because a PC was
  usually available nearby (at work, home or in a
  web café).

• 6. LACK OF AWARENESS ABOUT SERVICES
• Non-users felt uninformed about the services that
  exist on the mobile internet. It seemed that
  service providers had not made (successful)
  efforts to inform this group that services
  existed which they might find useful.

32
Non-Users Why do they not use mobile
transactions? (1/2)
33
Non-Users Why do they not use mobile
transactions? (2/2)
34
Non-users of mobile transactions watched a
demonstration of a mobile transaction
35
Non-users response to demonstration
In all countries (except Germany) non-users
either watched a demonstration or tried out a
mobile transaction for themselves. Perhaps not
surprisingly, after seeing a good example of
service provision, non-users felt more positive
towards future use. The demonstrations were
particularly effective in helping change
assumptions that usability issues would be a
major barrier.
36
Which platform do users prefer for internet
transactions PC or Mobile? Why do they have
these preferences?
37
PC vs. Mobile

• The PC platform was seen as having many
  advantages by both users and non-users because
• Internet connection is more reliable
• Large screen means information is easy to view
• Easy to operate (e.g. keyboard easy to use)
• Overall quicker to use
• Easy to look up additional information on a PC
  (noted in Italy)
• i.e. the PC provides a user experience with all
  the ease and reliability that is absent from the
  mobile user experience.

38
PC vs. Mobile
An either/or comparison is not necessarily the
correct way to approach use of the mobile and PC
platforms. Some participants viewed the two
platforms as complementary...

• The two platforms are not necessarily used for
  the same type of activity mobile platform suits
  goal-oriented activities rather than browsing
  (Spain)

• Participants in Germany saw mobile phone services
  as a back up to PC-based web. Mobiles could
  satisfy immediate informational needs which could
  then be elaborated on later on a PC if needed

• French users sometimes began purchase process on
  the mobile but completed on the PC
• Quote Sometimes I find an interesting product on
  my phone, I send myself an e-mail with the URL.
  Then when I come back home, I purchase the
  product on PC.

39
We looked in particular detail at mobile banking
transactions and what attitudes participants had
towards these types of transactions.
40
Mobile Banking

• Mobile banking is available in all participating
  countries but is not a highly utilised service
  amongst current users.

• WHY?

• The general problems associated with other mobile
  transactions (handset and site usability, poor
  connectivity, questionable security and costs of
  use) also apply to banking transactions. Only
  many of these problems are more serious with
  banking transactions.

41
How do problems apply to banking?

• Security
• Criminal access to bank accounts could lead to
  devastating financial loss. All the concerns
  expressed earlier about security are even more
  serious when applied to banking transactions.

• Site design screen size
• Users might not see all the information on small
  screens so cannot trust that they are basing
  their actions on the correct knowledge. Excessive
  scrolling and cluttered page design are also
  likely to contribute to errors.

• Key pads
• German users noted that difficult to use key pads
  could result in serious transaction errors, e.g.
  entering cash transfer of 2570 vs. 25,70

• Connectivity
• A loss of connectivity during an important
  banking transaction was seen as a problem, partly
  because participants did not trust that they
  would receive adequate feedback from the website
  about the success/failure of the transaction.

42
Contents

• Introduction
• Terminology used
• Market Information (by country)
• Findings from focus groups
• Recommendations
• About the Authors

43
Recommendations Usability site design

• One of the biggest issues found in all countries
  is that websites designed for PC access rarely
  translate well on handheld devices.
• WEB DESIGN FOR MOBILE DEVICES
• Ideally all sites would have a version designed
  specifically for the mobile platform on which
  they will be accessed.
• But guidelines for designers of sites likely to
  be accessed via any mobile device should include
• Minimalist design put usability above
  aesthetics!
• Limit the need for sideways scrolling
• Reduce page sizes optimise for low speed
  connections
• Minimise need for data entry (reduces reliance
  on hard-to-use keypads)

44
Recommendations Usability handset design

• Handset manufacturers have some way to go in
  creating handheld devices that support mobile
  internet use. As they move towards this goal they
  should focus efforts on
• Improving usability of keypad design
• Enlarging screen sizes
• Enhancing battery life

Recommendations Connectivity coverage

• Not surprisingly, extending the geographical
  coverage of mobile internet networks, especially
  3G networks, will please users, making ubiquitous
  on the go internet access a reality.
• Enhancing the speed and reliability of
  connectivity are also vital - users want to feel
  confident that mobile transactions can be
  completed successfully and speedily.

45
Recommendations Security
ENHANCE SECURITY Some ideas from participants
Fingerprint technology instead of PIN numbers to
unlock mobile phones for use (Germany China)
Have separate bank card with small credit limit
used solely for mobile transactions - limits
losses (China)

• IN ADDITION service providers could
• Provide confirmation messages when
  transactions are successful, provide informative
  error messages when issues arise (reassurance)
• Invest in SMS payment systems that by-pass bank
  systems where banking systems are not
  well-developed

46
Recommendations Costs

• INFORM
• Networks need to inform customers and potential
  customers about what charges to expect - payment
  structures available should be made very clear.
• FLAT RATES
• Flat rates were of interest to many participants,
  particularly with an unlimited data transfer
  quota. Flat rates are likely to appeal partly
  because users are familiar and feel comfortable
  with this type of charging from their home/work
  broadband charges.
• REDUCED COSTS
• Participants in most countries wanted mobile
  internet access costs reduced.
• Could network providers carry out more research
  to identify the types of payment structures and
  level of cost that will get people using the
  mobile internet?

47
Recommendations Service design

• GET ONE THING RIGHT!
• Users would rather have one part of a web service
  provided brilliantly on the mobile rather than an
  entire web service poorly provided. Which leads
  to
• TAILOR SERVICES FOR CONTEXT OF USE
• Service providers should keep in mind differences
  of PC vs. mobile internet use, e.g. banking
  participants were most interested in services
  supporting on the go needs such as checking
  account balance and viewing recent account
  transactions than in cash transfers, stocks and
  share dealings or other more complex
  transactions.
• PROVIDE DESIRABLE SERVICES
• Service providers should focus on providing the
  services that users want. To find out what is
  desirable, service providers must talk to their
  current and potential customers requirements
  gathering should happen before service
  development (more detail on next slide)

48
Recommendations Service design

• DESIRABLE SERVICES
• Some of the transaction services that users and
  non-users felt were most useful reflected their
  view of mobile internet as an on the go tool.
  Desired services from our research included
• Road toll fees
• Timetables for public transport
• Last minute bids on eBay
• Public transport tickets
• Paying parking fees
• Adding phone credit
• Accessing street and road maps
• Downloading video/music (e.g. for train
  journeys)
• Service providers must carry out research with
  customers to identify exactly which services are
  most wanted.

49
Recommendations Education

• Network and service providers will benefit
  enormously from investment in educating current
  and potential mobile internet users, and are
  likely to see usage rise as a result.
• PUBLICITY MATERIALS should
• Be aimed at a wider audience, not just teens
• Inform users potential users about services
  available
• Make very clear what mobile internet usage will
  cost
• Promote examples of good usability. Show them it
  does exist!
• Dispel myths and confirm facts about security
  issues
• Advise users on protecting themselves from
  hackers, viruses etc

50
Contents

• Introduction
• Terminology used
• Market Information (by country)
• Findings from focus groups
• Recommendations
• About the Authors

51
International Usability Partners

• The International Usability Partners are an
  established network of independent usability
  companies who have joined up to provide user
  experience services worldwide, from North America
  to the Far East. Each partner is an expert in
  global user experience design, specialising in
  the cultural and linguistic characteristics of
  their home country.
• Adage Usability (Finland)
• Amberlight Partners ltd (UK)
• Design for Lucy (France)
• DNX (Spain)
• Experientia s.r.l (Italy)
• ISAR User Interface Design (China)
• User Interface Design GmbH (Germany)
• IUP also have an extended network of other
  usability companies all around the world,
  including
• USA, Canada
• Brazil, Mexico
• Austria, Netherlands, Poland, Russia, Sweden,
  Switzerland
• India, Japan, South Korea

52
Adage Usability Helsinki, Finland www.adage.fi
Raino Vastamäki Director Research Development

Annika Valtari Research Assistant Usability
User Experience
53
Amberlight Partners Ltd London,
UK www.amber-light.co.uk
Einav Avni Usability Consultant
54

• Design For Lucy
• Paris, France
• www.designforlucy.com

Jérôme Gatefin Usability Consultant
55
DNX Group Madrid, Spain www.dnxgroup.com
Maritza Guaderrama Research Director
David De Prado Project Manager
Dorothy Silva Consultant
56

• Experientia s.r.l.
• TorinoItaly
• www.experientia.com

Anna Vilchis Michele Visciola Researcher
President Experiencia s.r.l.
57
ISAR Beijing, Shanghai China www.isaruid.com
Xubo Jiang Research Director
Wei Zhang Usability Engineer
58
User Interface Design GmbH Ludwigsburg, München,
Mannheim, Dortmund Germany www.uid.com

• Sylvia Thalmeier
• Usability Engineer

Jakob Biesterfeldt Manager User Research
Derk Smit Usability Engineer
59
Contact the IUPs

• Adage Usability Finlandwww.adage.fi
• Amberlight Partners ltd.United
  Kingdomwww.amber-light.co.uk
• Design for LucyFrancewww.designforlucy.com
• DNXSpainwww.dnxgroup.com

• Experientia s.r.l Italywww.experientia.com
• ISAR User Interface DesignChina
• www.isaruid.com
• User Interface Design GmbH
• Germany
• www.uid.com