Consumers Not Enthusiastic about Digital Wallets

July 9, 2015, Written By John H. Oldshue
Kiev Ukraine - September 24 2014: Close-up shot of brand new Apple iPhone 5S showing website with news announce of Apple Pay service.

Americans are simply not that enthusiastic about the digital wallet.

Despite the development of Apple Pay, Google Pay, Samsung Pay, and a number of other independent digital wallet services, Americans aren’t taking to virtual payments as expected, according to a new study from Gallup.

Gallup broke consumers into three categories: fully engaged (willing to go out of their way to use their favorite digital wallet), indifferent (emotionally neutral about their digital wallet), and actively disengaged (willing to switch wallets at a moment’s notice).

The reports showed 30% of fully engaged consumers used their digital wallets at every possible opportunity during the last 30 days, compared to 12% of indifferent users and 2% of disengaged consumers. 48% of fully engaged customers said they used the wallet in supermarkets, followed by 21% at convenience stores, 27% at department stores, and 25% at specialty stores.

With regards to adopting to a new digital payment service, fully engaged consumers were highly likely to adopt a product from the same provider, but almost equally unlikely to adopt to a product from a different provider. For instance, 96% of people who were fully engaged in Apple Passbook said they were likely to switch to Apple Pay in the next 12 months, but 82% of fully engaged users for competing products said they were very unlikely to switch in the next year.

The study reached some conclusions on how digital wallet providers can help consumers to become more engaged:

* Make users feel special by offering special discounts on items that are relevant to the customer’s preferences or transaction history.

* Make it easy to use by making the digital wallet simple to install, upgrade, learn and use. In addition, consumers just want to use one digital wallet.

* Consumers want the digital wallet to be a source of convenience as well as almost becoming a financial assistant. Users would like the wallet to provide a transaction history to help consumers better manage their spending, or alert them if a transaction exceeds a certain amount.

The information contained within this article was accurate as of July 9, 2015. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.