More consumers now interested in mobile wallet technology

In the past, many experts have noted that consumers have been slow to accept the idea of mobile wallet technology, but a new poll finds that many may be growing more willing to adopt the payment method in the near future.

About 48 percent of Americans now say they are interested in using mobile wallet technology, though this is largely driven by young people, affluent consumers and early adopters, according to a new study from the Carlisle and Gallagher Consulting Group. In all, 67 percent of this group also use mobile banking technology today, or intend to do so in the future, indicating that those who have already been assured of the security of these mobile financial transactions may be more likely to trust other forms.

Of the 48 percent who expressed an interest in mobile wallet technology, there were two groups who intended to do so for entirely different reasons, the report said. More than half of them (27 percent of the total amount surveyed) were classified as "techno shoppers," consumers who liked the idea of shopping and using social features associated with mobile wallet programs, who currently use their credit cards to make payment decisions. The other 21 percent of those surveyed, known as "payment optimizers," preferred mobile wallet technology as a means of helping to make the best possible payments by combining their various accounts, loyalty rewards and the like.

"People have already slowed their use of cash and checks in favor of credit and debit cards," said Peter Olynick, card and payments practice leader at Carlisle and Gallagher. "Within five years, half of today's smart phone users will be using their phones and mobile wallets as their preferred method for payments. These customers will be using better tools to help them optimize transaction choices. Banks need to proactively consider how their products will stay ‘top of wallet’ in the new mobile wallet world."

Potential hurdles still linger for consumers
Despite the growing willingness to start using mobile payment technologies, many consumers still have a number of lingering issues that they would like to see addressed, the report said. For instance, many feel they are not being given the chance to manage several of their accounts through their mobile wallet programs as they are currently constituted, with 65 percent saying they want these systems to maximize loyalty programs and minimize interest payments.

In all, 82 percent of those identified as techno shoppers believe that the ability to make shopping easier via a mobile wallet was valuable, the report said. Another 62 percent said the payment platforms could make shopping more fun.

Many people have also expressed their concern over the security of these systems, but like mobile banking before it, it's believed that only the passage of time can fully help to convince users that these systems are more secure than current payment methods.

Posted in Uncategorized
Learn how it works

Questions about credit repair?

Chat with an expert: 1-800-255-0263

Facebook Twitter LinkedIn