Almost half of American consumers (48%) wish to use a mobile wallet and would consider alternative providers for banking services, according to a study published by financial research firm Carlisle & Gallagher Consulting Group (CG).
Peter Olynick, CG’s Card & Payments practice leader, estimates that “within five years, half of today’s smart phone owners will be using their phones and mobile wallets as their preferred method for payments”, causing banks to loose market share in the future if they don’t act now.
“The competitive threat from new entrants is real. Consumers are open to considering alternatives to their primary banks to provide mobile wallets and even core banking services,” said Olynick.
“Banks need to proactively consider how their products will stay ‘top of wallet’ in the new mobile wallet world,” he said.
Among the mobile wallet enthusiasts identified by the survey, 80% said they would choose PayPal as their m-wallet and primary bank alternative, if it offered banking services.
Google would be an option for 60% of them. 60% of consumers also expressed interest in an m-wallet provided by Apple, although the company does not offer such services.
Minimising interest payments, maximising loyalty programme usage and having the ability to make better payments were rated as the most valuable advantages of digital wallets services for consumers. Other consumers said they believe m-wallets make shopping easier, faster and more fun.