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Mobile Wallets Are Not Convenient Enough for Consumers
Monday, August 31, 2015 6:40 AM

A recent article about consumer wallet behavior on PaymentsSource says new data indicates the industry needs to recalibrate to a more accurate perspective of digital payments needs. Gallup reports that only 13 percent of U.S. adults with a smartphone have a digital wallet on their device. Of that number, 76 percent have very rarely used it to make a purchase from a retailer in the past 30 days. In fact, 38 percent of them do not see any benefit to using the technology at all.

Gallup found 91 percent of consumers who do not have a digital wallet say they are unlikely to start using one in the next 12 months. A reported 55 percent of non-users identified security as the primary reason they were unlikely to use a digital wallet in the next year, with 21 percent saying they did not know enough about the technology, and 14 percent indicating they did not see the benefit of using a digital wallet instead of credit cards.

The article says mobile payment adoption will begin to climb steeply when there is a digital model that does not require multiple wallets, additional swipes and extra pokes to make a payment. This is where financial institutions have something to offer. They already have a growing and vital digital relationship with customers that presents the perfect foundation for a convenient digital payments relationship. In addition, financial institutions meet the need for security to be the foundation of any digital payments model that expects to receive wide acceptance. Banks and credit unions are the organizations consumers repeatedly identify as those they trust most to keep their money safe. 

Most noise around mobile wallets is not about the consumer, but rather about the vested interest of the companies offering them. Our focus should be about helping the consumer pay for goods and services using digital technology that provides convenience, security and other value-added benefits. Financial institutions are uniquely positioned to lead this effort and create the next generation of payments that will transcend all channels.  

Read more about this study on the use of mobile wallets.