Consumers Showing Concerns About Using Digital Wallets

Consumers Showing Concerns About Using Digital Wallets

February 19, 2013         Written By Lynn Oldshue

Many consumers do not fully understand the concept of a digital wallets, and a majority are concerned about their security.

These were some of the findings of comScore’s study, Digital Wallet Road Map 2013, which measured the consumer awareness, perceptions and intent to use digital wallets.

Digital wallets store the virtual information found in a consumer’s physical wallet to facilitate online retail transactions.

The overall concept of a digital wallet is hard to comprehend for a high number of consumers. Respondents in the study scored an average of just 45 percent in terms of demonstrated level of understanding.

Security is the major concern with consumers. 93 percent of consumers would prefer to use a digital wallet that has to be unlocked before use.

Many competitors have entered the digital market industry, but it is dominated by PayPal. 72 percent of respondents were aware of PayPal’s digital wallet while only 51 percent said they are aware of any other wallets. Just 12 percent of respondents have used a digital wallet other than PayPal; for these remaining 88 percent, only 38 percent they’d likely use a digital wallet in the future, 27 percent said they were unsure, and 23 percent said they were unlikely to use digital wallets.

“Low awareness, understanding of benefits and availability among retailers are among the key barriers to adoption of digital wallets. While these impediments may seem like a steep hill to climb, we have seen this story play out before in the financial services industry. There was a time when consumers were reluctant to use ATMs for similar reasons, and, today, look at how far we’ve come since the 1970s and 1980s,” said Andrea Jacobs, comScore Payments Practice Leader.

The study was based on a panel of one million U.S. consumers and two additional surveys of more than 2,000 Internet users in the United States. It was conducted in November 2012.

The information contained within this article was accurate as of February 19, 2013. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Lynn Oldshue

Lynn Oldshue has written personal finance stories for for twelve years. She majored in public relations at Mississippi State University.
View all posts by Lynn Oldshue
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : 2% cash back on purchases: 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus