Mobile Payments Readiness Index

mobilereadiness.mastercard.com/unitedkingdom

UNITED KINGDOM
Mobile Commerce Clusters Consumer Readiness

Environment

37.5

Financial Services

Infrastructure

Regulation

Country Score

Index Average

SUMMARY
WHAT YOU NEED TO KNOW

The United Kingdom, with a sizable economy, large household spend, and a developed infrastructure, presents a very attractive picture for mobile payments readiness, as shown in its total score of 37.5 on the MasterCard Mobile Payments Readiness Index. Among its most

attractive features is the intuitive distribution of familiarity, willingness, and usage of mobile payments by type across demographic segments, which lays out an easy-to-follow road map for marketing mobile payments. It only remains for issuers, telcos, and other players to connect the dots.
The United Kingdom is very active in partnerships and joint ventures Mass market consumers are familiar with and using mobile P2P payments The United Kingdom is heavily carded (38% compared with an Index average of 28%)

COUNTRY OVERVIEW

Market Forces
MOBILE READINESS FACTORS IN THE UNITED KINGDOM

The size and velocity of the economy in the United Kingdom combined with an especially vibrant partnership scene is reflected in a high Mobile Commerce Cluster score. Barclaycard, Orange, and MasterCard have teamed up for the Orange Credit Card, while Telefonica O2 and Vodafone have joined forces to develop mobile NFC payments at POS in 2012.
*Calibrated to the highest country average

85%

90%

33%

11%

Internet penetration

Mobile phone prevalence*

United Kingdom

Smartphone penetration
Index Average

Tablet penetration

UK household expenditure per capita at $24,000 is (along with Frances and Germanys) among the highest in Europe; it compares globally with an average household expenditure of $11,015

per capita. Eighty-five percent of the population has access to the Internet, and mobile phone penetration is 90 percent, as compared to an Index average of 67 percent. Smartphone penetration in the

United Kingdom is 33 percent, compared to an Index average of 27 percent, while tablet penetration is 11 percent.

Consumer Sentiment
UK familiarity, willingness, and usage each skews male, and in addition skews relatively youngwith one interesting exception. Money transfer, or P2P, skews up to age 49 in familiarity, a reflection of the United Kingdoms large expat and immigrant population. But whats especially noteworthy in the United Kingdom is the segmentation according to income evinced in the market research. P2P skews toward mass market in both usage and familiarity, while it skews toward high income in willingness. M-commerce, which also scores strongly in usage among UK consumers32 percent in terms of familiarity and 13 percent in terms of usageskews toward high income in usage as well as familiarity and willingness. If this isnt a marketing plan in a box, it at least shows the way forward.

GLOBAL PERSPECTIVE ON CONSUMER SENTIMENT IN THE UNITED KINGDOM

100%

75%

50%

32% 20% 25% 21% 17% 16% 8% 4%

13% 9%

25%

16% 14%

16% 11%

19% 13%

5% 5%

0%

P2P

POS m-comm FAMILIAR

Country Score

P2P

POS m-comm WILLING

Index Average

P2P

POS

m-comm

USING
Leading Country Score

To view this data in more detail, visit mobilereadiness.mastercard.com/unitedkingdom

MASTERCARD CONCLUSION MasterCard believes the United Kingdom is likely to be the testing ground for mobile payments in Europe. In some ways this sets up an unfair comparison, because in terms of financial services and culture (credit card penetration as well as debit card usage are key), the United Kingdom much more closely resembles the United States, Canada, and Australia than it does Germany, France, and Italy. This resemblance only strengthens the case that the United Kingdom has all the ingredients for a leading position in advancing mobile payments.
View Data Sources at mobilereadiness.mastercard.com/about

UNITED KINGDOM

37.5
IN
DE

X AVG 33

.2

Mobile Payments Readiness Index

mobilereadiness.mastercard.com/unitedkingdom