Digital wallets lack mindshare for now

Digital wallets lack mindshare for now

Summary: According to comScore, consumers rarely knew of non-PayPal digital wallets, which aim to replicate physical wallets via devices like smartphones.

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Digital wallets from the likes of Google, PayPal, telecom carriers and credit card companies are struggling to garner mass awareness, according to a comScore study.

According to comScore, consumers rarely knew of non-PayPal digital wallets, which aim to replicate physical wallets via devices like smartphones. The study is based on a panel of 1 million U.S. consumers and two surveys of more than 2,000 U.S. Internet users.

The short version of comScore's study breaks down like this:

  • PayPal's history as a payment system is paying off for digital wallet awareness.
  • There's a big drop off between respondents who were aware of digital wallets and those who actually used them.
  • Credit card companies don't have the momentum you'd expect.
  • Square is faring relatively well in the land of giants.
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What's the hang-up? First, 45 percent of respondents could explain how a digital wallet works. In addition, security is an issue and few consumers knew wallets could be locked after visiting vendor Web sites.

The big picture is that consumers were slow to use ATMs and aren't going to be rushing toward digital wallets anytime soon until there is a lot more education about them.

Topics: Mobility, Banking, E-Commerce

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  • Not surprising - Focus on consumer value vs. wallet utility

    These results don’t surprise me. From my perspective, focusing on a wallet vs. consumer value is the missing link here. It is not about being the wallet for the consumer or improving the credit card swipe as we all know it. It is about the value that the consumer can get from digitizing their information. If a user takes the time to put their information into their phone, they should see more relevant content pushed to them in a way that is meaningful. Consumers don’t want more deals pushed to them; they want less, more useful deals and information. When the market starts to focus on user value and not the utility of the wallet, this is when more adoption will occur.
    nedmoore