Monday, September 29th, 2014 - Roy Morgan Research

Over 1.5 million Australians intend to purchase an iPhone in the next twelve months. Those intending to purchase an iPhone are already familiar with making payments by mobile phone, with nearly one third of them (29.4%) doing so in an average four week period, so the new Apple Pay feature has the potential to impact adversely on fee revenue.

These are the latest findings from the Roy Morgan Single Source survey of over 8,000 interviews conducted in the six months to June 2014.

Bank customers intending to purchase an iPhone

With the potential for banks to lose fee revenue, it is worth looking at the proportion of each of the major banks customers that intend to purchase the latest iPhone.

It is not surprising that 14.1% of ING Direct customers intend to purchase a new iPhone over the next 12 months, given the type of bank it is and the type of customers it attracts.

Bank customers intending to purchase an iPhone in the next 12 months

bank-customers-to-buy-iphones

Source: Roy Morgan Single Source, 6 months to June 2014, n=8,146

Of the four major banks, the ANZ has the highest proportion of intenders with 9.7%, followed Westpac 8.8%, NAB 8.1% and CBA 7.9%.

High spend potential for “Apple Pay”

As a guide to the potential spend on “Apple Pay”, it is important to note that those people intending to purchase an iPhone are not only already familiar with mobile payments (29.4% do so in an average four week period) but have above average household incomes. The average household income of iPhone intenders is $130K pa, well above the Australian of $97K pa and so have the potential for higher spending levels.

The average age of intenders is 37 years, much younger than Australian population average of 45 years. This lower age is generally associated with an increased propensity to try new things and as a result it would be likely that these early adopters would be willing to spend more on the new system, depending perhaps on any costs involved.

Norman Morris, Industry Communications Director, Roy Morgan Research, says:

“It is reasonable to expect that the new iPhone will increase mobile payments, particularly considering the fact that the early adopters of this device are already comfortable in making mobile payments and have above average spending potential.

 

“There is much discussion currently as to whether banks will suffer any material loss of revenue from interchange fees and the potential threat that these non-bank payment providers represent.

 

“It is likely that both parties will be trying to retain and maximise revenue and as a result it is likely that ultimately any increase will be passed onto consumers and merchants. The extent to which this will be possible may be limited by the Reserve Bank of Australia which currently has a cap on the level of interchange fees and any negative customer reaction.”

View this release in full on our website

Contact Profile

Roy Morgan Research


Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Samantha Wilson
P: (03) 9224 5268
W: www.roymorgan.com

Keywords

finance, banking, telecommunications, iphone, apple pay, ING Direct, Bendigo Bank, ANZ, Suncorp, Westpac, NAB, CBA

Categories

Newsrooms

Sharing

More Formats