Mobile Payments at the Service Station| Verdict Trend Report

Summary
In the UK in 2014, contactless payments took place at the rate of 10 a second and rose in value by ￡219m since 2013. Retailers across Europe are increasingly beginning to offer mobile payments as they look to benefit from faster payment transactions. Unmanned sites, car washes, fuel cards and retailer loyalty schemes can all benefit from the introduction of mobile payments at the forecourt

Key Findings
- Plan future strategies by examining the benefits and potential barriers to the adoption of mobile payments at the forecourt.

- Identify future mobile payment trends and how you can take advantage of them

- Examine how other retailers use mobile payments at the forecourt and benchmark them against your current offerings.

- Analyse current motorist mobile payment spend and frequency to correctly set payment limits at the forecourt.

Synopsis
Only 13.3% of motorists across Europe use mobile payments at the forecourt, due to the lack of service stations accepting this payment type. With motorists also being limited to a maximum spend of around ￡20 (dependent on local currency) per transaction, many are unable to use mobile payment methods, even if they have set them up.

Italy has the highest spend on mobile payments per transaction across the top five European countries at €26.79 due to the number of smaller vehicles and scooters in the national parc, that have smaller tanks making their refuel cost eligible as it comes under the transaction limit.

European motorists who use mobile payments do so twice a month on average. With the maximum spend using mobile payments being so low, many motorists will only be able to use this payment type if they are not refuelling their tank fully or visiting the shop for food and drink items, limiting its use at the forecourt.

Reasons?To?Buy
- What are the current trends in mobile payments at the forecourt? And how can retailers take advantage of them?

- How much does the average motorist spend per mobile payment at the forecourt and how often do they currently use it?

- What are the benefits for fuel retailers of implementing mobile payment methods at the forecourt?

- What are the barriers to mobile payment uptake at the forecourt and what are the solutions to these issues?

- How will future mobile payment trends affect the market and how can fuel retailers take advantage of them?

1 Overview
2 Summary
2.1 Smartphone ownership to rise and drive increase in mobile payments
2.2 Retailers increasingly accept mobile payments
2.3 Mobile payments bring advantages to the forecourt
2.4 Increase to pay limit will have little effect on mobile payments at the forecourt
2.5 Security concerns one of the main barriers to mobile payment uptake
2.6 Difficulty in changing payment habits is a barrier to mobile payments
3 Types of Mobile Payments
3.1 Remote payments
3.2 Proximity payments
3.2.1 Contactless payments
3.2.2 Mobile wallets
4 Current Mobile Payment Trends
4.1 Growing smartphone usage
4.1.1 Increased number of smartphones across the globe will facilitate mobile payments
4.1.2 Current smartphone users will also increase mobile payment usage
4.1.3 More phones being sold with built-in NFC
4.2 Apple Pay is changing the landscape of mobile payments
4.2.1 Apple Pay making mobile payments even easier for clients
4.2.2 Apple Pay appeals to businesses through international coverage and no spending limit
4.3 Retailers investing in mobile payments
4.3.1 Increase in the number of retailers accepting mobile payments
4.3.2 Pump manufacturer Tokheim has begun offering mobile payments
4.4 Rising pay limit
4.4.1 UK contactless pay limit to rise to ￡30 in September 2015
5 Applications of Mobile Technology
5.1 Unmanned service stations
5.1.1 Mobile payments will facilitate the opening of unmanned sites
5.1.2 Cut down investment costs through mobile payments
5.1.3 Allay motorist security concerns through mobile payments
5.2 Car wash
5.2.1 Car wash facilities help retailers to remain competitive
5.2.2 Lack of on hand staff could lead to technical problems
5.3 Fuel cards
5.3.1 Mobile payments help fleets' time-efficiency
5.3.2 Mobile payments more secure than some fuel cards
5.3.3 Mobile payments reduce transaction costs for retailers
5.3.4 Targeting drivers through mobile payments will boost fuel card volumes
5.4 Loyalty cards and scheme participation
5.4.1 Loyalty schemes increasingly used to entice motorists
5.4.2 Mobile payments increase the likeliness of repeat business
5.4.3 Mobile payments solve limited wallet space issues
5.4.4 Motorists will be able to take part in more loyalty schemes
5.4.5 Potential for motorists to forget about loyalty schemes
5.5 Targeted loyalty schemes
5.5.1 Mobile payments provide purchase behaviour information
5.5.2 Time-sensitive advertisements allow for specific targeting
5.5.3 Weather-specific offers used to increase sales at the forecourt
6 Current Mobile Payment Usages
6.1 Shell creating a payment app with PayPal
6.1.1 Shell creates mobile payment app
6.1.2 Shell can build loyalty through its payment app
6.1.3 Maximum spend limit could stall uptake of the Shell app
6.1.4 Mobile payment app restricts sale of food and drink
6.1.5 Easy to operate app crucial to motorist uptake
6.1.6 Mobile payments provide distinct advantage for fuel cards
6.2 PKN Orlen in Germany and Carrefour in France introduce contactless payments
6.2.1 Contactless payments make it easy to adjust payment habits
6.2.2 Older generation will struggle to adapt to new technology
6.2.3 Food and drink sales maintained through placing of contactless terminal
6.2.4 Marketing the benefits of contactless key to habit changes
6.2.5 Low maximum spend hinders contactless uptake
6.2.6 Fuel card clients can make easy transition to contactless
6.3 LUKOIL accepts SpectroCoin mobile wallet that can use bitcoins
6.3.1 LUKOIL receives local currency not bitcoins
6.3.2 bitcoin future unstable
6.3.3 Lack of sites accepting bitcoins will halt payment uptake
7 Barriers to B2C Uptake of Mobile Payments
7.1 Current pay limits make it difficult to use at the forecourt
7.1.1 Low maximum spend limits mobile payments in majority of European markets
7.1.2 Payment limits to become obsolete over coming years
7.1.3 Mobile payment spend limits restrict use to non-fuel forecourt items
7.2 Technological issues
7.2.1 Technological issues can discourage motorists from using new payment types
7.2.2 Mobile payments allow the opening of more unmanned stations
7.2.3 Easy to follow interface key to uptake
7.2.4 Older motorists may struggle with new technology
7.3 Breaking payment habits
7.3.1 Changing payment habits key to uptake
7.3.2 Lack of places to use mobile payments
8 Barriers to B2B Uptake of Mobile Payments
8.1 Fleets would have to invest in NFC-enabled smartphones
8.1.1 Mobile payments require investment in smartphones
8.1.2 High replacement costs
8.1.3 Security levels not high enough to warrant switch
8.1.4 Faster payment times provide limited commercial benefits
8.2 Lack of third-party coverage
8.2.1 Lack of third-party coverage across Europe
8.2.2 Using two payment types is impractical for commercial drivers
8.3 No Europe-wide coverage
8.3.1 Domestic-only app makes it impractical for commercial use
8.3.2 Apple Pay provides global coverage
9 Future Mobile Payment Trends
9.1 Simplified payment systems
9.1.1 Motorists will need faster payment
9.1.2 Automatically linking app and phone will bring advantages
9.2 Biometric scanning significantly increases security
9.2.1 Biometric smartphone technology will make payments more secure
9.2.2 Biometric will be the ultimate tool in fraud prevention
9.2.3 Biometrics will allow for payment limits to rise significantly
9.3 Europe-wide coverage
9.3.1 Creating European partners will bring in commercial clients
9.3.2 Multiple purpose payment apps will be more attractive to motorists
10 Consumer Payment Trends
10.1 Mobile payment usage
10.1.1 Over 80% of motorists across Europe do not use mobile payments
10.2 Mobile payment usage frequency
10.2.1 Over 20% of motorists using mobile payments use it twice a month when visiting the forecourt
10.3 Mobile payment average spend
10.3.1 Turkey spends the most on mobile payments across Europe per visit
10.3.2 Of the top five markets in Europe, Italy spends the most per mobile payment transaction
10.3.3 On average, motorists' mobile payment spend at the forecourt is €20.18
11 Methodology
11.1 Stage one: primary research
11.1.1 Verdict Motorist Survey
11.1.2 Interviews
11.2 Stage two: secondary research
11.3 Stage three: data modelling
11.4 Stage four: data finalisation
12 Appendix
12.1 About Verdict Retail
12.2 Disclaimer