Wallet adoption has remained stagnant, Javelin report shows

Monday 10 September 2018 13:36 CET | News

From 2015 to 2017, consumer usage of a mobile wallet for an in-store purchase has hovered at or slightly above 30%, according to a Javelin report.

The report uncovers the fact that 39% of consumers are trying out a mobile wallet but not finding it practical enough to use on a recurring basis.

As the ability to pay using a phone at the POS is not an improvement over consumers’ preferred payment methods, loyalty and rewards are expected to drive frequent use and adoption of the wallet, with payment at the POS being a natural evolution of the integrated wallet experience.

When consumers were asked what features they would use on their smartphone, the ability to pay for purchases at a store was not in the top five. However, the top three features cited by consumers shared a common theme: loyalty and rewards.

In addition, when consumers were asked the type of wallet they had used to make an in-store payment in the past twelve months, merchant wallets (18%) led over Apple Pay (16%), Google Pay (12%), and Samsung Pay (10%).

The report, Mobile wallet wars: a battle for consumer loyalty also shows that smartphone owners who have made a purchase on a mobile browser or app but not in-store, are the ideal target market for wallet adoption. This group, named M-Commerce-Only Purchasers, respond more positively by approximately 10% than the average consumer to smartphone features that they would be most likely to use.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Alipay, mobile wallet, ewallets, Javelin, Google Pay, Samsung Pay
Countries: World