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's Consumers & Convergence IV survey.

Like our global counterparts, security and privacy appears to be an issue for Canadians with 63% and 58% ''very concerned" about privacy and security, respectively. At the same time, global respondents are worried about security and privacy at 67% and 59%, respectively. However, Canadians indicate lower usage of mobile devices for purchasing and banking.

    * Only 19% of Canadians feel comfortable using their mobile phone for financial transactions compared to 34% of global respondents.

    * 8% of Canadians have made purchases using a mobile phone through a retailer's site - double the amount from last year, but significantly less than global consumers at 28.

    * 15% of Canadians have done banking through a mobile device compared to 45% globally.

According to Brendan Maher, National Industry Leader of KPMG's Information, Communications, and Entertainment practice, these consumer concerns over privacy and security are pivotal to the continued adoption of e-commerce and mobile commerce.

"Companies which implement robust policies and safeguards and which provide for full disclosure of these measures are likely to reap the rewards through enhanced customer attraction and retention," he says.

Mobile internet surge led by fastest-developing economies

In China, 77% of respondents say they have used their mobiles for banking and 44% for retail transactions, while in India 38% are using them to shop, and 43% for financial business.

In the 5 years since KPMG launched the Consumers & Convergence survey, dramatic shifts have occurred in how consumers integrate internet and mobile technology into their daily lives. This spring, KPMG surveyed more than 5,000 consumers in 22 countries, including 300 in Canada, in order to continue to track the consumer landscape and future market implications.

Consumers and Convergence IV also offers up some suggestions to the challenges faced by companies as they relate to converged technologies and consumer behaviours. It reveals that Canadians continue to seek free content and are relatively advertising adverse.

    * 85% of Canadians are not willing to pay for access to site content through their mobile phone and would look for the same or similar content elsewhere through a free site, compared to 76% in the US and 57% globally.

    * In Canada, advertising in exchange for lower prices or free content/services is more willingly received on a PC than on a mobile phone at 45% and 21% respectively-however, global respondents were more willing with 56% indicating they would receive it on their PC and 42% on their mobile phone.

"These findings underscore an opportunity for carriers, content producers, and advertisers to work together. Companies in this sector are seeking new, profitable business models which will help alleviate the loss in revenues from traditional models involving print advertising", adds Maher. Collaboration between companies to deliver additional benefits to consumers in exchange for ads has already proven to be successful in several instances and ultimately proves rewarding for all stakeholders "

Other key findings include Canadian usage of cloud services, which while ahead of global and US respondents, indicates a lack of awareness of its potential for business usage.

    * 72% of Canadian consumers use some sort of cloud computing services (e.g. Google docs and hotmail) as compared to just 51% of Americans and 66% of global respondents.

    * 48% of Canadians have downloaded media (e.g., music, movies, games), compared to 64% globally and 39% in the US.

    * Storage in the cloud is largely for email, photos, and contacts with business usage at only 13% for Canada (24% globally and 8% in the US).

"The low adoption rate of cloud computing services by consumers for business information likely indicates either a low confidence in cloud security and controls, or a degree of uncertainty as to how to integrate cloud computing into the enterprise platform" adds Yvon Audette, National Leader of KPMG's  IT Advisory Services.

"For consumers, once privacy concerns have been addressed, there are few technological barriers to adoption given the ease of use and access,” says Audette. “Businesses, however, must also consider the technical challenges such as systems integration, data retention and disaster recovery capabilities.

As a result, business leaders need to clearly understand the requirements that are to be met by cloud services and build a plan for getting there: addressing consumer concerns over privacy and security is one part of this.