Report: 9 out of 10 Consumers “Unlikely” to Begin Using Digital Wallets in Next 12 Months
July 13, 2015
While mobile payments via apps and browsers are growing significantly , the category of mobile payments that consistently gets the most hype—proximity payments using a device at the point of sale—continues to struggle. A new report from research company Gallup found only 13 percent of smartphone owners have a digital wallet on their device and, of those, 76 percent have never used it or haven’t used it in the past 30 days. Perhaps more alarming to Apple, Google, Samsung, PayPal and all the other companies diving into the digital-wallet space, 91 percent of consumers who do not currently have a digital wallet said they are unlikely to begin using one in the next 12 months.
Overwhelmingly, the reason consumers cite for their reticence more than any other is security. Fifty-five percent of the naysayers said fears their phone will get hacked or stolen is the primary reason they won’t use the technology. The good news for digital wallet providers? The second-most cited concern by consumers is they don’t know enough about them, so education could have a significant effect.
“The lukewarm state of the digital wallet market is mainly driven by consumer reluctance to adopt this new technology,” said Gallup analysts. “The good news for budding providers is that both the technology and the market are still developing, which offers every player a chance to win. Companies that can convince consumers to adopt their digital wallets—by gaining their trust, educating them on how to use the technology and by providing a clear value proposition on how using it will benefit them—will likely be the market leaders of the future.”