A large number of consumers use their cellphones to research products and services in stores and they are increasingly willing to share usage data with advertisers, but most have concerns over the security of mobile transactions, says a KPMG report.
The report, titled, 'Consumers and Convergence', found that over two-thirds of consumers surveyed globally were willing to allow their online usage patterns and personal profile information to be tracked by advertisers if it results in lower costs or free content.
"When consumers are online or using their mobile devices, over two-thirds would allow their online usage and location to be tracked, providing they get a deal," KPMG Global Head (Retail) and Partner Mark Larson said, adding that it increases to over 75 per cent for 16 to 24-year-olds.
Consumers in the Asia-Pacific are more willing to be monitored, followed by those in the Americas and Europe. The report, based on a survey of 9,000 consumers in 31 countries, said a large number of people worldwide now research products and services and make purchases from their mobile devices.
It said that mobile banking is increasingly gaining acceptance among consumers, with 66 per cent of the respondents globally using mobile devices such as cellphones and smartphones for payments, a significant rise from 2008, when half of the respondents
"Mobile commerce is evolving toward a whole new distribution model with all to play for," KPMG Communications and Media Global Head Sean Collins said. Apart from mobile banking, consumers have shown an increasing appetite for adoption of new technologies and business models, with 51 per cent of respondents preferring to watch TV and movies online on their computers and 24 per cent on their smartphones.
"The appetite of consumers to adopt new technologies means that a digital strategy should be a core component of any business in the retail, media, banking and service provider sectors," Collins added.
Despite the readiness to adopt new technologies, as well as the surprising willingness by consumers to have their personal data tracked, the survey showed that yet again, the most significant barrier to new digital models continues to be concerns over data privacy and security.
The number of people concerned about these issues has increased from 75 per cent to 90 per cent, the survey noted. "I am astonished when I see that data privacy and security is not only the most critical issue among consumers worldwide, but that year-over-year those concerns increase," KPMG European Head (Technology) and Partner Tudor Aw said.
"This is a key issue that should have been addressed by now. Whoever can master the privacy challenge will gain a significant competitive edge," he added.
