Despite major concerns over privacy and data security, people around the world are rapidly adopting the mobile internet as an easy and convenient method of carrying out everyday transactions, including banking and shopping, according to KPMG International's survey Consumers & Convergence IV. Only 19 percent of Canadians feel comfortable using their mobile phone for financial transactions.

Likeour global counterparts, security and privacy appears to be an issue forCanadians when using a mobile device, with 63 percent and 58 percent "veryconcerned" about privacy and security, respectively. At the same time,global respondents are worried about security and privacy at 67 percent and 59percent, respectively. However, Canadians indicate lower usage of mobiledevices for purchasing and banking:

·      Only 19 percent of Canadians feel comfortableusing their mobile phone for financial transactions, compared to 34 percent ofglobal respondents

·      8 percent of Canadians have made purchases usinga mobile phone through a retailer's site-double the amount from last year, butsignificantly less than global consumers at 28 percent

·      15 percent of Canadians have done bankingthrough a mobile device, compared to 45 percent globally.

"Theseconsumer concerns over privacy and security are pivotal to the continuedadoption of e-commerce and mobile commerce," says BrendanMaher, National Industry Leader of KPMG's Information, Communications& Entertainment practice. "Companies that implement robust policiesand safeguards and provide for full disclosure of these measures are likely toreap the rewards through enhanced customer attraction and retention."

Thesurge in mobile internet is being led by the world's fastest developingeconomies. In China, 77 percent of respondentssay they have used their mobiles for banking and 44 percent for retailtransactions, while in India 38 percent areusing them to shop and 43 percent for financial business.

Inthe 5 years since KPMG International launched the Consumers & Convergencesurvey, dramatic shifts have occurred in how consumers integrate internet andmobile technology into their daily lives. This spring, KPMG surveyed more than5,000 consumers in 22 countries, including 300 in Canada,in order to continue to track the consumer landscape and future marketimplications.

Consumersand Convergence IV also offers up some suggestions to the challenges faced bycompanies as they relate to converged technologies and consumer behaviours; itreveals that Canadians continue to seek free content and are relativelyadvertising adverse:

·      85 percent of Canadians are not willing to payfor access to site content through their mobile phone and would look for thesame or similar content elsewhere through a free site, compared to 76 percentin the US and 57 percent globally

·      In Canada, advertising in exchange for lowerprices or free content/services is more willingly received on a PC than on amobile phone, at 45 and 21 percent respectively; however, global respondentsare more willing with 56 percent indicating they would receive it on their PCand 42 percent on their mobile phone.    

"Thesefindings underscore an opportunity for carriers, content producers, andadvertisers to work together. Companies in this sector are seeking new,profitable business models, which will help alleviate the loss in revenues fromtraditional models involving print advertising," adds Maher. Collaborationbetween companies to deliver additional benefits to consumers in exchange forads has already proven to be successful in several instances and ultimatelyproves rewarding for all stakeholders."

Otherkey findings include Canadian usage of cloud services, which, while ahead ofglobal and US respondents, indicates a lack of awareness of its potential forbusiness usage:

·      72 percent of Canadian consumers use some sortof cloud computing services (e.g., Google Docs and Hotmail), as compared tojust 51 percent of Americans and 66 percent of global respondents

·      48 percent of Canadians have downloaded media(e.g., music, movies, games), comparedto 64 percent globally and 39 percent in the US

·      Storage in the cloud is largely for e-mail,photos, and contacts, with business usage at only 13 percent for Canada (24percent globally and 8 percent in the US).

"Thelow adoption rate of cloud computing services by consumers for businessinformation likely indicates either a low confidence in cloud security andcontrols, or a degree of uncertainty as to how to integrate cloud computinginto the enterprise platform," adds Yvon Audette, National Leader ofKPMG's IT Advisory Services. "For consumers, once privacy concerns havebeen addressed, there are few technological barriers to adoption given the easeof use and access. Businesses, however, must also consider the technicalchallenges, such as systems integration, data retention, and disaster recoverycapabilities. Business leaders need to clearly understand the requirements thatare to be met by cloud services and build a plan for getting there; addressingconsumer concerns over privacy and security is one part of this."

Formore information about the Consumers & Convergence IV survey, please visit http://bit.ly/cU0OQX.

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About the ICE Consumers & ConvergenceIV survey

Consumers& Convergence IV is the fourth regular global survey of consumer use oftechnology produced by KPMG International's Information, Communications &Entertainment (ICE) practice. A total of 5,627 respondents from 22 countriescompleted an online survey in the spring of 2010 (surveys in Slovakia and the CzechRepublic were carried out by phone).

About KPMG

KPMGLLP, the audit, tax and advisory firm (kpmg.ca), a Canadian limited liabilitypartnership established under the laws of Ontario, is the Canadian member firmof KPMG International. KPMG International's member firms have 140,000professionals, including more than 7,900 partners, in 146 countries.

Theindependent member firms of the KPMG network are affiliated with KPMGInternational, a Swiss entity. Each KPMG firm is a legally distinct andseparate entity, and describes itself as such.