Saturday 25 October 2014 | RSS

 
Feedback
 
 

Auriemma: UK consumers want to get mobile wallets from their bank

A mobile wallet containing only cards issued by their bank is the most popular option for British consumers, a new survey has found, suggesting that the battle to be “top of wallet” for mobile payments may turn into a fight to be “only card in wallet”.

Auriemma Consulting Group

AURIEMMA: Consumers want bank-issued mobile wallets

A UK survey conducted by Auriemma Consulting Group has found that consumers are most interested in having a mobile wallet that is issued by their bank — and that they only want to put cards issued by their bank in that wallet.

Asked to rank their interest in various types of mobile wallets, consumers interested in having a mobile wallet replied as follows:

  • Ranked #1: Mobile wallet provided by my bank, which offers the ability to link only their cards onto it
  • Ranked #2: Mobile wallet provided by my bank, which offers the ability to link cards from multiple banks onto it
  • Ranked #3: Mobile wallet provided by a non-bank provider (eg Apple, Google, O2, etc), which offers the ability to link cards from one bank onto it
  • Ranked #4: Mobile wallet provided by a non-bank provider (eg Apple, Google, O2, etc), which offers the ability to link cards from multiple banks onto it

Concerns over security remain high, however, and overall only 18.4% said they would acquire a mobile wallet from a bank while 11.6% would acquire a mobile wallet from digital/mobile payment provider such as PayPal. Only 9.5% of consumers said they would acquire wallets from mobile providers such as O2 or Vodafone while 5.1% would acquire a mobile wallet from an external provider such as Google, Apple or Facebook.

Linked to this concern over security, consumers interested in having a mobile wallet also preferred suppliers with a trusted record in payments. When asked what factors were most important to them when choosing a mobile wallet provider:

  • 72.7% of prospects selected their reputation/trust in the provider
  • 62.0% of prospects selected their existing relationship with the mobile wallet provider
  • 52.9% of prospects selected the provider having past experience within the financial services space
  • 52.1% of prospects selected the features and benefits offered on the mobile wallet
  • 38.0% of prospects selected their loyalty to the brand that issued the mobile wallet
  • 33.6% of prospects selected the mobile wallet’s ratings and reviews

“The mobile wallet is poised to gain strong momentum and usage over upcoming years, so in order to capitalise on the strong consumer interest banks will need to consider their preferred path moving forward in this space,” says Auriemma. “Banks can either invest in the development of proprietary mobile wallets, or partner with existing mobile wallet providers to serve as a funding mechanism for the wallet. Non-traditional providers, conversely, need to either prove their experience within the financial services space, or partner with existing payment providers.”

“The key to the success of the mobile wallet is to deliver a product that serves a clear purpose and delivers on a consumer need,” says Matt Simester, Auriemma’s managing director. “In addition, banks will need to find ways to monetise the mobile wallet, to ensure it becomes financially viable in the long-term.”

More headlines...