Some 48 percent of 605 surveyed U.S. consumers are interested in a mobile wallet, with initial interest the strongest among affluent and younger customers – a finding with clear implications for banks likely to soon find themselves competing, in some ways, with PayPal, Square, Intuit, Sage and possibly Google and Apple (News - Alert).
Some more urgent findings suggest the most likely defectors are younger and affluent – two customer segments any bank wants to attract and retain.
Approximately 76 percent of affluent and younger respondents use or will use mobile banking.
“Techno Shoppers” see value in the shopping and social features of mobile wallet apps.
“Payment Optimizers” – 21 percent of users and those likely to adopt – are more interested in loyalty benefits and account management.
The study, conducted by Carlisle and Gallagher Consulting Group, also found that 80 percent of respondents interested in mobile wallet services would use PayPal (News - Alert) as their mobile wallet provider. Some 60 percent might use Google – the same percentage that indicated they might use Apple.
Half of the Techno Shoppers would prefer to use PayPal over their primary bank as their mobile wallet provider. Three in 10 would prefer to use Google (News - Alert), and two in 10 would prefer to use Apple, the study found.
According to the study, 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.
But they’re frustrated with the number of offers they receive and their ability to track the terms and conditions for each of their cards. Mobile wallets provide a systematic way to mitigate these pain points.
The top frustrations for consumers are the inability to manage offers and incentives, and keeping track of payment due dates.
Some 65 percent of respondents rated the ability to make better payment choices, such as maximizing loyalty programs or minimizing interest payments as the most valued mobile wallet service.
Edited by Braden Becker