Estonia is best digital home away from home, report says

Expats voted Estonia to the top of their digital life quality list in a new survey.

InterNations, a social network for expats, recently conducted a global survey to gauge the perception of digital lives enjoyed by those living in a foreign country. 68 countries were featured. Although most of the findings confirmed the conventional wisdom, the report also threw up a couple of surprises.

Overall, the Nordic countries ranked high, with Finland, Norway, and Denmark all in the top 5 best countries for digital life table. But topping the list is Estonia, which ranked exceptionally high on the e-government index, with 94% of all expats surveyed feeling satisfied with the availability of the country’s administrative services. Estonia also topped the table of unrestricted access to online services. The country, similar to other Baltic and Nordic countries, adopts a light-touch approach towards Internet. Following Estonia on the e-government satisfaction list is Singapore, with Norway coming second on the unrestricted access to online service table.

Unsurprisingly, South Korea, which leads the world in broadband access, also tops the league of high-speed internet at home, followed by Taiwan and Finland. Expats were also asked to rate their experience of cashless payment. The four Nordic countries took the top 4 positions, with Estonia rounding off the top 5. Finland was ranked in the first place, with 96% expats saying they are happy with the experience.

A question that is particularly relevant to expats is how easy it is to get a local mobile number. Here we see a bit surprise. Myanmar, which ranked at the bottom of the overall Digital Life table, came on top in this list, followed by New Zealand and Israel.

On the other end of the tables, China was only beaten by Myanmar to the bottom of the overall Digital Life table and sat comfortably at the bottom of “Unrestricted Access to Internet”, thanks to the all powerful Great Firewall. This is particularly pertinent for expats who would have a stronger need for the global social networks more than the local residents, to communicate with their home countries. 83% of all expats were unsatisfied with their access to social networks from China, followed in the second from bottom by Saudi Arabia, where 46% said they were unsatisfied.

The ranking may not be a big surprise, but the margin between the bottom two countries may be. The only table that China was not in the bottom 10 was the one on cashless payment. But, maybe surprisingly, with all the fanfare about the contactless payment experience enabled by companies like Alibaba and Tencent, expats living in China did not manage to take the country to the top 10 table either.

Best and worst countries for Digital Life

Europe approves new internet rules designed to rein in Amazon and co

As part of the overall Digital Single Market programme, the European Parliament has voted to approve new regulations claiming to protect European businesses and consumers when using online platforms to trade.

The “Regulation on platform-to-business trading practices” has been almost two years in the making since the publication of a document titled “Online Platforms and the Digital Single Market: Opportunities and Challenges for Europe” by the European Commission in May 2016.

The EU executives were understandably happy with the passing of the new rules. “We are delighted by the overwhelming support to the new rules on online platforms’ trading practices among the members of the European Parliament. As the first-ever regulation in the world that addresses the challenges of business relations within the online platform economy, it is an important milestone of the Digital Single Market and lays the ground for future developments. Not only will it improve trust, predictability and legal certainty, it will also offer new and accessible options for redress and resolution of disputes between businesses and platforms,” said the official statement, jointly signed off by Andrus Ansip, the Commission’s Vice-President for the Digital Single Market, Elżbieta Bieńkowska, Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, and Mariya Gabriel, Commissioner for Digital Economy and Society.

What drove the Commission to undertake such an initiative two years ago was the understanding that there is a lack of a redress mechanism when the European SMEs encounter problems when trading on the global platforms (companies singled out include Booking.com, Facebook, eBay, and Amazon), for example, “delisting without statement of reasons or sudden changes of Terms and Conditions”. The Commission has also assessed the effectiveness of legislative vs. non-legislative measures, but believed an EU-wide legislation is necessary.

The Regulation is aimed to achieve three main objectives as are outlined in the Impact Assessment Summary published a year ago:

  1. To ensure a fair, transparent and predictable treatment of business users by online platforms
  2. To provide business users with more effective options for redress when they face problems
  3. To create a predictable and innovation-friendly regulatory environment for online platforms within the EU

Although it has been approved by the European Parliament, the regulation still needs to be formally passed by the Council of the European Union, which represents the governments of the member states and can be roughly seen as another “chamber” of the union’s legislature. There is no definite timeline on when the Council will make the decision. However, by the reading of the press statement where the Commissioners thanked the member states “for their great efforts to reach a good compromise in a very short period of time. This is yet another positive development ahead of the upcoming European elections,” the Council may not be able to vote on it before the European Parliamentary election in May. After the final approval, the regulation will enter into force 12 months after it is published in the Official Journal.

This is the latest internet-related legislation the EU has made recently. On 15 April the Council passed the updated Copyright Directive “fit for the digital age”, which has proved controversial.  There are also legislation and regulation updates in member states. France has started levying 3% income tax on digital companies with sales in excess of €25 million in France and €750 million globally, without waiting for an EU-wide tax regime as part of the Digital Single Market. The UK, still an EU member state at the time of writing, has not only considered setting up a new regulator to oversee the digital world and started the consultation process of a “code of practice for online services” to protect children, but will also formally introduce the “porn block” on 15 July, which has been called “One of the Worst Ideas Ever” by some critics.

RCS is here to stay and doing well

RCS has been touted as a saviour when the SMS value has been destroyed by OTT messaging services, but without much success, but it may finally have find its moment.

Mavenir, the software company, presented on day 1 of MWC 2019, promoting its rich communication solutions offered by Rakutan. The key benefits, or the main use cases that RCS can differentiate from OTT messaging actually are less to do with taking consumers back to texting each other, or P2P messaging, but rather the communication between businesses and consumers, or A2P messaging.

This view is corroborated by Infobip, a Croatia-based messaging platform that provides aggregated OTT messaging services (e.g. WhatsApp, LINE, Viber, KakaoTalk, etc.) for their corporate clients, which the clients then can use for customer service and CRM. However, the company told Telecoms.com that its dominant business, which it has seen annual growth of between 30% and 40%, is SMS and RCS based services.

One of the use cases is helping businesses improve customer engagement. Despite that on feature comparison RCS is mostly playing catching up on OTT messaging services, SMS and RCS tramp OTTs in consumer trust. To quote Guilliaume Le Mener, Manevir’s SVP for Enterprise Business, RCS is a “clean channel”, not tarnished by the privacy scandals committed by Facebook and co, or the over monetisation by others. Research shared by Mavenir showed 97% of SMS / RCS are opened within 3 minutes.

In one case, Infobip was hired by Twitter to reengage the inactive users, after the social media giant failed the mission with its early efforts through email. Thanks to its rich features, RCS messages can enable users to explore the content directly. For those users on phones not compatible with RCS, brands can choose to fall back on SMS with a web line. The results were much more improved also owing largely to the capability of producing rich analytics to evaluate the campaign effectiveness and make quick decisions on any changes needed.

In addition to A2P messaging, RCS is also being used by brands to engage consumers in P2A, that is engaging directly with the brands through messaging. On the brand side the service can be handled by bots. This will then need to be supported by AI and analytics which will be another business opportunity for the RCS solution providers. With OTTs also actively moving into the P2A domains, again this is an area that operators need to have a stronghold for RCS before it is too late.

For Rakuten, RCS may be particularly meaningful, as, coming from an internet service and MVNO background, Rakuten has a big range of digital service tied to a user’s Rakuten ID. RCS will be a key instrument to maintain and strengthen customer engagement when it builds out its 5G network from ground up.

Half of British millennials are getting sick of the internet – report

A new EY report shows 50% of 25-34-year olds are looking to ‘digital detox’, the highest proportion of all age groups.

The “Decoding the digital home 2019” report, published by EY, the professional service firm, was done based an online survey of 2,500 British households in late 2018. In addition to the high proportion of youth wishing to increase their time away from smartphones and other internet connected devices, more people are spending less time online. The percentage of households spending more than 30 hours online per week has gone down from 34% a year ago to 28%, while those spending less than 10 hours online has slightly increased from 18% to 21%.

There are also other surprises. For example, more consumers are happy with their fibre connections (59%, up from 54% a year ago) but also higher number of young people are ready to ditch the fixed broadband (43%). 42% of 18-24-year olds are happy to pay a premium to get the latest gadgets, but only 18% of the 25-year olds and above, who would have more disposable income, are prepared to do so.

The key message that the telecoms and internet industries should take away from the survey, however, is that consumers want simplicity, proof of trust, and assurance of security.

Both service and content providers are confusing consumers with over-complex packages, causing anxiety among users, including the youth. 46% of households think there are too many different broadband, mobile, and content bundles, so most of them will not add anything new to the packages they already subscribe to. Content providers are trying to maximise the distribution channels they can use, therefore making their content available across different packages, platforms, and apps. However, nearly a quarter of all surveyed households found it hard to track their favourite content. This number rose to close to 40% among the 18-24-year olds, the so-called “digital natives”.

The high-profile cases of comprised private data have instilled more caution to consumers. 72% of respondents said that even when dealing with brands they trust they would be very cautious about disclosing their personal financial information online.

On the other hand, the heated debates over “fake news” have driven more consumers less confident in the “new media”. 44% of households responded that they now only trust the traditional news sources. In a teaser to an upcoming report, EY disclosed that over half of all households only watch the five traditional channels on TV.

But it is not all bad news especially for the mobile industry. In 15% of the households surveyed, smartphones are now the main devices to go online with (up from 11% in 2017), at the expense of laptops (down from 44% to 39%). When it comes to consumer spending, slightly more are willing to pay for ad-free streaming (up from 16% to 18%) and slightly fewer are holding their purse strings as tightly as possible when it comes to spending on communication services (down from 55% to 53%)

“Our latest survey highlights both opportunities and challenges for TMT providers. They will be pleased to see that consumers are willing to pay for premium services, but they will also be concerned that customers are overwhelmed and confused by the variety of bundles available,” said Praveen Shankar, EY’s Head of Technology, Media and Telecommunications for the UK & Ireland. “Looking ahead, it is essential for providers to simplify their propositions and offer easier to understand and clearly communicated product and services.”

ey-decoding-the-digital-home-2019

 

Commuters account for 14% of UK online spending – research

A new report into commuters’ spending habits reckons they drop £23 billion per year of stuff via their mobile devices while on the move.

The research was conducted by media agency Kinetic and media owner Exterion, who both apparently specialise in OOH. Disappointingly this doesn’t mean they spend all their time exclaiming in amazement at stuff. Instead OOH stands for out-of-home and refers to the kind of advertising you get hit with when, you guessed it, you’re away from your house.

Across the whole country commuters apparently blow £89 per week on their phones one average, which seems remarkably high. London commuters spend £153 per week, we’re told which is bordering on mania and we can only assume this average is skewed by city types buying Lamborghinis on their phones or something. Across the board clothes seem to be the most popular purchase, which tallies with another recent report on this sort of thing.

“Our research shows that in today’s age of time-poor consumers, the everyday commute is fast becoming a valuable opportunity to make purchases,” said Stuart Taylor, CEO of Kinetic. “At a time when footfall is declining on our high streets, these findings confirm that retailers can nevertheless reach a valuable urban audience in a physical environment.”

“Commuters are the lifeblood of the UK, and hugely important to the economy, businesses and advertisers; they keep our nation moving and growing, as they travel,” said Nigel Clarkson, Chief Revenue Officer at Exterion. “Our research proves the commercial impact of the Commuter Economy, through the billions contributed to online retail annually.”

Both of them banged on about OOH advertising but laboured the point far too much for us to burden you with their unvarnished propaganda. That doesn’t mean they’re wrong, however. It stands to reason that people would use the dead time taken up by commuting to get other stuff done and it’s worryingly easy to buy stuff on your phone these days.

Giesecke+Devrient lands Swatch contactless payment gig

Mobile security company Giesecke+Devrient is helping Swiss watch company Swatch with its own contactless payment technology.

Rather annoyingly called SwatchPAY!, the contactless platform was launched in China back in 2017 and is now available in Switzerland. It involves sticking an NFC chip in a watch, which you can then sync with your credit card. In that respect it’s pretty much a contactless card embedded in a watch.

Whether it functions just as easily is unclear, but Swatch seems to have partnered with all the right companies, including Mastercard, Credis Suisse, UBS and G+D. The latter is doing what it does best in providing the secure element for these watches, which also enables the activation of the contactless payment function in-store, when you buy one. Here’s how it works.

Swatchpay chart

“Continuous innovation is a key strand of the Swatch DNA,” said Carlo Giordanetti, Swatch Creative Director. “This latest advance, with the introduction of the fastest and simplest tokenization, makes it easier than ever to pay ‘forever’ – token up your Swatch, swipe it and you’re done. SwatchPAY! is simple, stylish and swatchy.”

“We are thrilled to be Swatch’s partner for this payment-enabled watch, which has been a huge success in China,” said Carsten Ahrens, CEO of Giesecke+Devrient Mobile Security. “The unique mix of iconic Swatch design and a payment functionality makes this a very appealing product, and we are proud to have contributed our extensive expertise in security, mobile payment and wearables technology.”

The Swiss watch industry has been in a flap about smart watches for a while, so it’s sensible to see one of them develop its own contactless payment platform. They’re fortunate that the killer use-case for smart watches hasn’t been found yet, but it presumably will be eventually. The key to this alternative being a success will be its ease of setup and use and it looks like they might have got that right.

UK mobile commerce is exploding – research

New research from price comparison site uSwitch.com reveals that the use of mobile devices to go shopping in the UK is growing rapidly.

They got market research firm Opinium to chat to 2,000 adult Brits about their mobile commerce habits and intentions. The survey concluded that we will blow £25 billion buying stuff with our phones and tablets this year, up from £15 billion last year. Furthermore they reckon 30 million of us will use our phone to shop this year, which will represent a 66% annual increase.

“With smartphone and tablet shopping now a £25 billion industry, it’s hardly surprising that  major retailers have long adopted a mobile-first approach to their websites and have even introduced their own apps to make the user experience as easy as possible,” said Ru Bhikha. “Cleaner user journeys and the ease of one-click purchasing will only add to the number of people shopping on their phones and tablets.”

The main appeal, unsurprisingly, is simple convenience, with the ability to shop at any time coming in a close second. Other prominent reasons given for shopping over your phone seem to apply to all e-commerce, including the ability to compare prices, greater choice and better prices.

The survey also asked questions about e-commerce habits in general. As you can see in the table below Amazon and eBay have a clear lead over the online manifestations of bricks-and-mortar retailers, although the latter seem to be doing a decent job of trying to keep up. Somewhat surprisingly clothes are by far the most bought type of product online, followed by books, groceries and cinema/theatre tickets. The living room is by far the most popular location for blowing all this cash.

Website % of shoppers to have used website last year
Amazon 89%
eBay 63%
Argos 41%
Tesco 35%
Marks and Spencer 25%
Asda 25%
Sainsbury’s 22%
John Lewis 20%
Currys PC World 17%

Source: uSwitch.com

Brits can’t be bothered with Black Friday

Americans like to spend a whole day giving thanks for stuff and then spend the next day buying loads more if it. Over here, not so much.

Thanksgiving is a national holiday in the US that seems to be some kind of harvest festival, complete with traditional feast. For some reason they like to spend the next day engaged in a retail frenzy that has become known as Black Friday due, apparently, to the fact that this is the first time retailer’s balance sheets move into positive territory (in the black, as opposed to the red).

Because retailers like nothing more than calendar imperatives to buy stuff, such as Christmas, Valentine’s Day, etc, UK ones have been keen to import this compulsion over here. But according to new research from Genesys 80% of UK consumers won’t bother to hit the high streets this Friday, with the majority of them paradoxically saying they’ll stay away because things get too busy.

“This year, the vast majority of British consumers are planning to stay away from stores on Black Friday because it’s not worth the bother,” said Richard McCrossan, digital lead for Genesys. “They prefer shopping online in the comfort of their own home – or whatever location is convenient –  to the chaos of dealing with crowded high-street stores.

“Shopping has become as much about the experience as the purchase – and during the holidays, that means speed is of the essence and convenience is king. Only 5% of respondents said a low standard of customer service is a reason to avoid physical stores, so it’s other aspects that put consumers off.

“With an estimated 14 stores per day closing in the UK, retailers must meet consumers’ expectations for hassle-free experiences at every touchpoint – from making payments to finding answers to questions, to getting personalised, friendly service. It’s not just about the purchase – it’s about making the experience great.”

So it remains possible that we will buy loads of stuff on Friday, but over the internet. US etail giant Amazon tends to go big on Black Friday and the internet arms of UK companies may be tempted to follow suit. In semi-related news it looks like the use of smartphones to make contactless payments is exploding in the UK, with recent research revealing they now account for 7% of all such transactions.

Amazon Pay acquires app aggregator platform Tapzo

Amazon has acquired Indian app company Tapzo in a deal to bolster its digital payments offering.

According to the Economic Times, the deal will be valued between $40-45 million, while co-founders Ankur Singla and Vishal Pal Chaudhary will be brought onto the Amazon team to continue development of the offering. While the acquisition is yet to be confirmed by either party, sources state Amazon is after a shortcut to get in on the mobile money bonanza.

“It would have taken Amazon Pay up to two years to build an entire stack of service offerings to enable efficient use-cases for its payment platform,” one source familiar with the deal stated. “So this acquisition helps them save time and also enables them to spread their cashback offers across a host of services immediately.”

Tapzo is an aggregator platform that allows users to access over 35 apps including Amazon, Flipkart, Ola and Uber through a single screen, but also allows for mobile payments, to pay bills, order cabs and food and book flights and hotels. The most popular service for users to date has been bill payments and recharges, with about 15,000 transactions per month across the two services.

Integrating the Tapzo capabilities into the Amazon Pay business will offer the team plenty of ammunition as the battle for domination in the Indian payments market warms up. While there are several local firms are controlling market share for the moment, PhonePe and Paytm for example, the continued digital revolution in India is attracting the interest on the international scene.

Aside from Amazon, Google has also been carving itself a new revenue stream in India. Its Tez offering has recently been rebranded to Google Pay, and will start offering new services such as pre-approved loans.