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Description

Description

Covered in this report

The majority of consumers are favouring online purchasing ahead of in-store, although there continues to be a fine balance between security and convenience with this process. Many consumers like using biometrics ahead of passwords, and are happy for sites to remember their card details for future purchases. Conversely, the vast majority are concerned about the security of using a voice assistant for a purchase, which will be a significant early roadblock for voice commerce.


Consumers across all age groups are most likely to use a laptop for an online purchase, but younger consumers prefer to use smartphones by far. Around a quarter of those who use a smartphone to make online purchases have done so with a mobile payment service, such as Apple Pay or Google Pay. Meanwhile, just under 30% of all consumers use their smartphone as a contactless payment device in-store.

“There are many emerging technologies that are developing the buying experience, such as the ability of AR to visualise a product before purchasing. Additionally, smartphone-based buying has significant potential for growth due to its reliance on biometrics ahead of passwords, and its role in both the online and in-store shopping experience. However, it will take some more time for consumers to build the trust in voice-based payments.”
– Zach Emmanuel, Consumer Technology Analyst

This report looks at the following areas:

  • Using mobile biometrics to support purchases on other devices
  • Social networks could send tailored product notifications

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Digital wallets paving the way for a mobile-first path to purchase
              • Biometrics is mainly a mobile technology but making headway on PCs
                • PayPal acquires card reader company iZettle
                  • Voice-based payment platforms emerging but security concerns will be a sticking point
                    • AR in the buying process
                      • Companies and brands
                        • Sainsbury’s opens store with similarities to Amazon Go
                          • Google updates sponsored advertising in Search
                            • Tik Tok promotes hashtag trend to drive app-based commerce
                              • Instagram adds Checkout payment tool
                                • ASOS adds AR-based Virtual Catwalk to mobile app
                                  • The consumer
                                    • Laptops still the most common purchase platform
                                      • Figure 1: Devices used to make online payments, November 2019
                                      • Figure 2: Devices to be used for future purchases, November 2019
                                    • Online recommendations among the top ways to present a new product
                                      • Figure 3: Source of introduction for the product or service purchased, November 2019
                                    • Over half of buyers use third-party payment service
                                      • Figure 4: Type of payment method used online, November 2019
                                    • Mobile wallets most likely to be used for app payments
                                      • Figure 5: Type of payment made using a mobile wallet, November 2019
                                    • Majority of consumers against using smartphones as contactless payments
                                      • Figure 6: Use of smartphones for contactless payments in-store, November 2019
                                    • Nearly half of buyers prefer biometrics to password security
                                      • Younger Millennials most likely to auto-fill card details and enable one-click purchasing
                                        • Figure 7: Attitudes towards convenience and security for online purchases, November 2019
                                      • Almost two thirds of buyers concerned about security of voice control
                                        • Figure 8: Privacy concerns with smart speakers, November 2019
                                      • Majority of buyers prefer to purchase products online than in-store
                                        • Nearly 80% of Gen Z buyers research products with their smartphone in-store
                                          • Over half of Gen Z and Younger Millennials prefer to use apps to shop than websites
                                            • Figure 9: Online and app-based shopping preferences, November 2019
                                          • Over a quarter of buyers have accessed customer service through a messaging app
                                            • Generation Z most likely to have used a chatbot in the buying process
                                              • Buying through social media reasonably popular for Gen Z and Millennials
                                                • A third of Millennial buyers have used AR to visualise potential purchases
                                                  • Figure 10: Use of AR, chatbots and social media for online purchasing, November 2019
                                                • What we think
                                                • Issues and Insights

                                                  • Using mobile biometrics to support purchases on other devices
                                                    • The facts
                                                      • The implications
                                                        • Social networks could send tailored product notifications
                                                          • The facts
                                                            • The implications
                                                            • Market Background – What You Need to Know

                                                              • Digital wallets paving the way for a mobile-first path to purchase
                                                                • Biometrics is mainly a mobile technology but making headway on PCs
                                                                  • PayPal acquires card reader company iZettle
                                                                    • Voice-based payment platforms emerging but security concerns will be a sticking point
                                                                      • AR in the buying process
                                                                      • Market Background

                                                                        • Digital wallets paving the way for a mobile-first path to purchase
                                                                          • Biometrics is mainly a mobile technology but making headway on PCs
                                                                            • Figure 11: Touch ID on MacBook Pro 13-inch (2019)
                                                                          • PayPal acquires card reader company iZettle
                                                                            • Figure 12: iZettle card reader
                                                                          • Voice-based payment platforms emerging…
                                                                            • Figure 13: Ownership of static technology products, September 2019
                                                                          • …but security concerns will be the sticking point
                                                                            • AR in the buying process
                                                                              • Figure 14: Usage of AR applications, August 2019
                                                                          • Companies and Brands – What You Need to Know

                                                                            • Sainsbury’s opens store with similarities to Amazon Go
                                                                              • Google updates sponsored advertising in Search
                                                                                • Tik Tok promotes hashtag trend to drive app-based commerce
                                                                                  • Instagram adds Checkout payment tool
                                                                                    • ASOS adds AR-based Virtual Catwalk to mobile app
                                                                                    • Launch Activity and Innovation

                                                                                      • Sainsbury’s opens store with similarities to Amazon Go
                                                                                        • Google updates sponsored advertising in Search
                                                                                          • Figure 15: Sponsored ads on Google Search
                                                                                        • Related product ads above YouTube videos
                                                                                          • Tik Tok promotes hashtag trend to drive app-based commerce
                                                                                            • Instagram adds Checkout payment tool
                                                                                              • NatWest adds voice banking functionality
                                                                                                • Amazon offers Alexa-based reminders for medication
                                                                                                  • ASOS adds AR-based Virtual Catwalk to mobile app
                                                                                                  • The Consumer – What You Need to Know

                                                                                                    • Laptops still the most common purchase platform
                                                                                                      • Majority of consumers against using smartphones as contactless payments
                                                                                                        • Nearly half of buyers prefer biometrics to password security
                                                                                                          • Almost two thirds of buyers concerned about security of voice control
                                                                                                            • Majority of buyers prefer to purchase products online than in-store
                                                                                                              • Over half of Gen Z and Younger Millennials prefer to use apps to shop than websites
                                                                                                                • Over a quarter of buyers have accessed customer service through a messaging app
                                                                                                                  • A third of Millennial buyers have used AR to visualise potential purchases
                                                                                                                  • Devices Used for Online Purchases

                                                                                                                    • Laptops still the most common purchase platform
                                                                                                                      • Figure 16: Devices used to make online payments, November 2019
                                                                                                                      • Figure 17: Devices used to make online purchases, by generation, November 2019
                                                                                                                      • Figure 18: Devices to be used for future purchases, November 2019
                                                                                                                  • Product Discovery and Payment Method

                                                                                                                    • Online recommendations among the top ways of discovering new products
                                                                                                                      • Figure 19: Source of introduction for the product or service purchased, November 2019
                                                                                                                    • Over half of buyers use third-party payment services
                                                                                                                        • Figure 20: Type of payment method used online, November 2019
                                                                                                                        • Figure 21: Type of payment method used online, by generation, November 2019
                                                                                                                      • Mobile wallets most likely to be used for app payments
                                                                                                                        • Figure 22: Type of payment made using a mobile wallet, November 2019
                                                                                                                    • Smartphones and Contactless Payments

                                                                                                                      • Youngest adults have embraced mobile contactless payments, but security concerns remain
                                                                                                                          • Figure 23: Use of smartphones for contactless payments in-store, November 2019
                                                                                                                          • Figure 24: Use of smartphones for contactless payments in-store, by generation, November 2019
                                                                                                                      • Convenience and Security for Online Payments

                                                                                                                        • Nearly half of buyers prefer biometrics to passwords
                                                                                                                          • Biometrics seen as secure, despite the potential risks
                                                                                                                            • Figure 25: Attitudes towards convenience and security for online purchases, November 2019
                                                                                                                            • Figure 26: Preference for biometric authentication over passwords, by generation, November 2019
                                                                                                                          • Younger Millennials most likely to auto-fill card details and enable one-click purchasing
                                                                                                                              • Figure 27: Agreement for websites to auto-fill card details, by generation, November 2019
                                                                                                                              • Figure 28: Use of one-click purchasing, by generation, November 2019
                                                                                                                            • Almost two thirds of buyers concerned about the security of voice control
                                                                                                                                • Figure 29: Privacy concerns regarding smart speakers, by generation, November 2019
                                                                                                                                • Figure 30: Privacy concerns regarding smart speakers, by generation, November 2019
                                                                                                                            • Attitudes Towards Online, App-Based and In-Store Purchasing

                                                                                                                              • Majority of buyers prefer to purchase products online than in-store
                                                                                                                                • Figure 31: Online and app-based shopping preferences, November 2019
                                                                                                                                • Figure 32: Preference to buy products online compared to in-store, by generation, November 2019
                                                                                                                              • Nearly 80% of Gen Z buyers research products with their smartphone in-store
                                                                                                                                • Figure 33: Use of smartphone to research items in-store, November 2019
                                                                                                                              • Over half of Gen Z and Younger Millennials prefer apps to websites
                                                                                                                                • Figure 34: Preference for using apps to buy products compared to websites, November 2019
                                                                                                                            • Usage of Social Media, AR and Chatbots in the Buying Process

                                                                                                                              • Over a quarter of buyers have accessed customer service through messaging app
                                                                                                                                • Figure 35: Use of AR, chatbots and social media for online purchasing, November 2019
                                                                                                                                • Figure 36: Speaking to customer service via social media messaging, by generation, November 2019
                                                                                                                              • Generation Z most likely to have used a chatbot in the buying process
                                                                                                                                • Figure 37: Use of chatbots when buying products, November 2019
                                                                                                                              • Buying through social media reasonably popular for Gen Z and Millennials
                                                                                                                                  • Figure 38: Use of social media apps to buy products, November 2019
                                                                                                                                • A third of Millennial buyers have used AR to visualise potential purchases
                                                                                                                                  • Figure 39: Use of AR during buying process, November 2019
                                                                                                                              • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                  • Abbreviations
                                                                                                                                    • Consumer research methodology

                                                                                                                                    This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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                                                                                                                                    • Brand/Company

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