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Financial Institution's Mobile Wallet Chosen by Four in 10
Tuesday, October 29, 2013 6:55 AM

Consumers continue to view their banks as a trusted payments provider, but they view PayPal Inc. as the nonbank to trust the most. Among Facebook, Apple, Google, Amazon and PayPal, the eBay unit gained the most consumer trust in the past year, according to a Javelin Strategy and Research report.

Javelin surveyed nearly 10,000 consumers this year to compile a look at the role the "Gang of Five" disruptors will have in the payments industry.

Of all brands, including the largest banks, PayPal rated at the top for trust at 34 percent of respondents, an improvement over its 2012 rating of 23 percent.

PayPal, a kingpin in the e-commerce payments space, increased its presence at the physical point of sale through deals with Home Depot and Discover Financial Services and various other companies in the past year.  PayPal also gained support from merchant acquirers like Heartland, Vantiv, and WorldPay.

With those partnerships in place, PayPal projects consumers will find the payment option in up to 2 million brick-and-mortar stores by the end of the year, the report says.

Each member of the Gang of Five posted gains in consumer privacy protection, while none of the legacy brands did, the report says.

Apple remained the consumer choice as the most innovative brand at 38 percent, followed by Google at 32 percent and Amazon at 27 percent.  Microsoft and PayPal rounded out the top five at 25 percent and 24 percent, respectively.

All of the Gang of Five has a step up on financial institutions in a key category, customer base.  Google Android has more than 900 million registered devices worldwide, compared to Apple's 675 million, while Facebook has 1.15 billion accounts, of which 819 million are monthly mobile users. Amazon has 200 million accounts, while PayPal has 132 million.

In addition to payments capability, comparison-shopping will be a key part of that mobile experience. Consumers rated that feature the highest, at 63 percent, as one they would most likely use.

Despite the consumer affinity for nonbanks, financial institutions remain in a good position to attract and keep mobile consumers.

Overall, 43 percent of respondents stated they would use a mobile wallet offered by their primary financial institution, while PayPal was second at 34 percent. MasterCard's MasterPass at 25 percent and Google Wallet at 24 percent rounded out the top three brands.

But barely half of the smartphone/tablet users said they would like to use their mobile phones to make purchases at a store or online checkout. All of the banks and nonbanks have much to do to spur adoption of mobile payments. Nobody views a mobile wallet as easier than swiping a plastic card.

 

(Source: Payments Source, 28 October 2013)