Research from Skrill highlights Brits are eager to spend money on and in apps – but only if the price is right
Almost one third of Brits would be happy to pay for food and drink in a restaurant using an app, according to research* commissioned for digital wallet provider Skrill, as part of its Future of Money campaign. However, those choosing to use this form of payment are only willing to spend small amounts, with the average spent within an app being £2.36; just enough for a cup of coffee or a sandwich. Just under one third (27%) have used or plan to use an app to purchase products on a smart phone.
As a result, the research exposes an emerging consumer demand for quick and convenient payments, reducing the need for a face-to-face interaction with a sales assistant. Interestingly, men are happier to reach deeper into their pockets and spend more money through apps then women, with males more likely to spend between £10-20 on goods than females.
Yet despite this minimal spend, app companies are still using high price points when launching their services to niche audiences, demonstrated with apps such as the XA1 for budding DJs, priced at £100, or the £699.99 Intuition Control Solo WolfVision, a high-end professional video conferencing app. With in app purchases now a common trend, app-makers also have the chance to invite consumers to try their product for free but then have the option to make purchases within the app. When comparing this to the current average app price of £1.03 (according to 148 Biz) it seems consumers are willing to spend more money using or building on a service they already use, than actually paying for a new app they haven’t used before.
With these findings into consumer app spending preferences, and given the recent announcement that Apple has reached the one millionth app in it’s App Store, it’s clear there is a huge market for in-app payments as an alternative revenue stream.
This is evidence of how the ‘app revolution’ is infiltrating the mobile payment industry, with consumers looking to spend small amounts on mobile applications in order to make a quick and easy purchase.
This means that apps are increasingly being used for more than just browsing or playing games. Instead they are being used by consumers that expect their transactions to be quick, simple and secure.
*The Skrill research data was supplied by OnePoll from an online survey of 2,000 UK adults weighted by gender, age and region.