Smartphones are making it easier to keep all of your rewards cards, credit cards and banking information in one spot, but there is still a main concern for consumers as to whether or not having everything in one spot is safe and financially smart. The convenience of a mobile wallet can be great, but is it secure?
A new PwC US report titled “Opening the Mobile Wallet” surveyed over one thousand U.S. participants and focus groups. The reports from the participants and groups showed that consumers are still hesitant to use mobile wallets; they are more trusting of using an actual credit card, even with the hovering threat of credit card fraud and identity theft.
However, PwC reports that consumers prefer the mobile wallet for things such as loyalty and membership cards, coupons and paperless tickets. Sixty- six percent of consumers said that they will use the mobile wallet for tickets to an event or transportation. Using this type of transaction feels more secure and less risky. Just go into any Starbucks, and you’ll see and hear members pull out their smartphone and say, “Hold on, I have the app.” Since most people have their phones with them at all times, using their phone to pay is less of a hassle than digging through a wallet to find the right form of payment.
So why are consumers willing to use their phones to pay for a cup of coffee, but not to store banking information? Less than half of consumers are comfortable with making financial transactions through the mobile wallet. Many are concerned that it is too easy to hack into the accounts and steal information.
At last year’s SXSW in Austin, Texas, it was projected that the value of mobile spending would reach $670 billion by 2015. Will marketers hit their mark? Consumers need reassurance that the mobile wallet is the way to go, which is why entertainment and media companies are looking to capitalize on its growing awareness and usage by offering incentives and money-saving opportunities.
Edited by Brooke Neuman
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