Embargoed: Not for publication before 00.

01hrs 09 April 2015

Mobile app use sees emergence of cashless society

- 185m European consumers expected to use mobile payment apps over the
next year
- Demand greatest from consumers in Turkey and Poland, but lack of trust is
the biggest barrier to uptake
- One in 10 (9%) Europeans have used ‘digital wallet’ services such as Apple
Pay

Half of European adults with access to a mobile device such as a smart phone or
tablet computer expect to use mobile payment apps over the next 12 months,
according to an international study of more than 14,000 consumers.

While one third (33 per cent) of Europeans have already used a mobile payment
app, which allows the user to make payments via mobile or tablet, this is
expected to increase to half (51 per cent) over the next 12 months. This means
as many as 185m 1 European consumers could be moving towards a ‘cashless
society’ – choosing to pay electronically rather than with physical cash.

The ING International Survey on Mobile Banking revealed that Turkish (56 per
cent) and Polish (43 per cent) mobile device owners are leading the way when it
comes to embracing mobile payment apps – a higher adoption rate than in the
USA (42 per cent). (See table 1 below).

However, the uptake of mobile payment apps is more gradual in other European
countries. Just one in eight have made payments via smartphone or tablet in the

1
European adult population for European sovereign nations, including Turkey. Data taken from
WolframAlpha, which gives adult population as 452.9m, of which 80% have a mobile device such as
smartphone or tablet computer, multiplied by 51% giving 185m to the nearest 1m.
Netherlands (13 per cent), while a quarter across Germany (23 per cent) and
France (25 per cent), and 30 per cent in the UK have done so – all of which lag
behind leaders Turkey and Poland.

For those yet to embrace mobile payment apps, a lack of trust is cited as the
biggest barrier (42 per cent). These figures suggest there is still work to be done
in reassuring consumers that their details are secure.

Despite the introduction of Apple Pay and Google Wallet, two high profile
services that allow payments to be made via smartphone, fewer than one in 10 (9
per cent) of respondents have used these or other ‘named groups’ to date.
Additionally, users are far more likely to consider using the app associated with
their bank for mobile payments (59 per cent) than ‘named groups’ such as Apple
or Google (39 per cent).

More people are using alternatives to physical cash to make purchases with half
(50 per cent) of Europeans saying they use physical cash much less than they
did 12 months ago. This trend looks set to continue, with 84 per cent of those
respondents saying they intend to use even less cash in the next twelve months.

The research also suggests the move to mobile money management comes with
added benefits. Nearly half (48 per cent) of respondents claim to feel more in
control of their finances, while one in five (20 per cent) pay their bills on time
more often and a similar number have never missed a payment (21 per cent)
since using mobile banking.

ING Senior Economist Ian Bright commented: “The global market for mobile
payments is reported to be growing rapidly* and what we’re seeing is a major
shift in consumer attitudes and behaviour to support that growth – though not
everyone is convinced about moving to a cashless society just yet.
“While physical cash still has its place in society, mobile payment apps are giving
consumers greater freedom when it comes to managing their finances. The
instant visibility offered by mobile banking also means more consumers feel in
control of their finances, claiming to have avoided missing payments and keeping
on top of bills.”

Table 1: Mobile Payment League (Europe)

Percentage of mobile Percentage of mobile

device owners who device owners who
have used mobile intend to use in next
payment 12 months

Turkey 56% 78%

Poland 43% 67%

Italy 39% 60%

Spain 35% 56%

Romania 32% 55%

United Kingdom 30% 46%

Czech Republic 26% 30%

France 25% 39%

Germany 23% 35%

Luxembourg 20% 32%

Belgium 20% 32%

Austria 18% 27%

Netherlands 13% 27%

Europe average 33% 51%

For further information please contact:
Susanna Walker-Robson, Third City 020 3657 9765 / 07861 253652
Dan Thompson, Third City 020 3657 9770 / 07771 520872

Notes to editors
The ING International Survey of 14,829 people was conducted by Ipsos using internet-based
polling. Fifteen countries were surveyed overall: Austria, Belgium, Czech Republic, France,
Germany, Italy, Luxembourg, the Netherlands, Poland, Romania, Spain, Turkey and the United
Kingdom (13 European nations) and respondents from the USA and Australia. Polling took place
between 16 January and 2 February 2015. The ING International Survey is produced three times
a year and covers various consumer-related themes. The full report on Mobile Banking will be
available here from 9 April 0:01 CET.

*Data on value of global mobile payments taken from Gartner study “The Mobile Economy 2013:
transaction volume from 2013 to 2017”, which values mobile payment transaction volume in 2014
at 325bn USD. An exchange rate of 1 USD = 0.931836 EUR was applied to this sum to give a
value of 302.8bn EUR.

About ING
ING is a global financial institution of Dutch origin, offering banking, investments, life insurance
and retirement services.

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