New market entrants are currently most popular amongst consumers ready to adopt mobile wallet technology, according to a survey conducted by Carlisle & Gallagher, with eight in 10 willing to use a PayPal wallet and six in 10 willing to consider a mobile wallet provided by Google or Apple.
48% of US consumers are now interested in having a mobile wallet, according to a survey conducted by Carlisle & Gallagher Consulting Group, and the vast majority are willing to consider a range of mobile wallet providers beyond their existing banking services provider.
Overall, PayPal was the most popular choice amongst those interested in using a mobile wallet, with eight in 10 saying they would consider PayPal as their mobile wallet provider. Six in 10 said that they would use Google, with the same number saying they would use an Apple mobile wallet.
The survey found that the 48% interested in having a mobile wallet fell into two clearly defined groups:
- Techno Shoppers (27%) — These consumers are attracted to the shopping and social features of mobile wallets as well as effectively using their cards to make the best possible payment decisions. Amongst this group, five in 10 would prefer to use PayPal over their primary bank as their mobile wallet provider. Three in 10 would prefer to use Google and two in 10 would prefer to use Apple.
- Payment Optimisers (21%) — These consumers are interested in making the best payment decisions based on their financial situation, loyalty benefits and account management.
Consumers interested in mobile wallets would also consider using alternative players for banking services, the survey found. Again, eight in 10 would consider using PayPal if it offered banking, six in 10 would consider using Google and six in 10 would consider using Apple.
"The competitive threat from new entrants is real," says CG's Peter Olynick. "Within five years, half of today's smartphone 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 optimise transaction choices. Banks need to proactively consider how their products will stay 'top of wallet' in the new mobile wallet world."
The survey also found that consumers place significant value on the benefits of various offers and incentives, from lower interest rates and cash back rewards to discounts and sales coordinated with loyalty programs. They are frustrated with the number of offers they receive, however, and with their ability to track the terms and conditions for each of their cards:
- 65% of respondents rated the ability to make better payment choices — such as maximising loyalty programs or minimising interest payments — as the most valued mobile wallet service.
- 82% of Techno Shoppers responded that making shopping easier was very valuable and 62% believe that mobile wallets will make shopping more fun.
"Banks need to ease the pain points with their mobile wallet features to retain customers," says Olynick. "We advise banks to update their core transaction processing capabilities today so they will be ready to provide improved transaction and shopping experiences in their mobile wallets tomorrow."