Consumers Still Skeptical of Mobile Wallets, Study Finds
A new study shows consumers are still hesitant to adapt to mobile wallets. The report indicated the low interest in digital wallets stems mainly from security concerns and limited opportunities to use the wallets.
According to 451 Research as reported in The Street, the percentage of people who are likely to make mobile payments in the coming year only rose 2% between 2013 and 2014, from 22% to 24%.
“With the percentage of consumers likely to make a mobile payment only increasing two points between December 2013 and 2014, it’s evident that mass-market adoption remains a distant reality,” said mobile payments researcher Jordan McKee from 451 Research.
Reports from ChangeWave Research last month revealed 84% of consumers are concerned about the security of storing their financial account information on their phones. Nearly 2/3 of consumers are worried about how easy digital wallets are to use and how compatible they will be with merchants they use.
So far, Apple Pay is considered the frontrunner in security for digital wallets. One in three consumers said they used this wallet mainly because of its security features. However, Apple has done very little to expand its relationships with merchants, making it difficult for consumers to find opportunities to use their digital wallet.
“There are simply very few opportunities to use the service,” said McKee.
Are mobile wallets the payment solutions of the future? That’s still up for debate. Until wallet providers find a better way to make consumers feel at ease about their security, they will struggle to triumph over traditional credit cards.