Report: Consumers Trust Visa and PayPal for Mobile Payments
Sept, 24, 2012
Visa and PayPal were cited as the most preferred mobile wallet providers by consumers in a recent report from California-based research firm Javelin Strategy & Research. While the jury remains out on whether and how quickly consumers will use mobile wallets, the report indicated consumers comfortable with mobile banking are ready to adopt them. Sixty percent of consumers who use mobile banking would likely adopt mobile wallets in the next 12 months. Fifteen percent of consumers named Visa when asked what company they would trust to handle their mobile payments and another 13 percent tabbed PayPal. Isis partners Verizon and AT&T were only cited by 9 percent and less than 5 percent of consumers named Apple, Google or Facebook as a preferred mobile payments provider.
“Consumers have spoken, and the primary bank relationship and the payment networks, such as Visa and PayPal, will be a key part of any widespread mobile wallet,” said Jim Van Dyke, president and founder of Javelin Strategy & Research. “Google was first out the door with NFC and has stumbled.”
Javelin researchers said they expected Apple’s iPhone 5 to lead the charge on NFC, but the new device does not support contactless payments.