By Raphael Michilis
Almost half of American consumers (48%) wish to use a mobile wallet and would consider alternative players for banking services, according to a study published on 4 June by financial researcher 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 wallets enthusiastic consumers heard 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 the option for 60% of them. Other 60% of consumers interested in m-wallets would also consider using Apple as their banking services player and digital wallet, although the company does not offer such services.
Mobile wallets make an efficient way to trim down consumers’ credit card frustration with the volume of offers they receive, keeping track of payment due dates, and their inability to track terms and conditions for each of their cards, according to the study.
Minimizing interest payments, maximising loyalty programs and ability to make better payments were rated as the most valuable advantages of digital wallets services for 65% of consumers. Other consumers said they believe m-wallets make shopping easier, faster and more fun.
Combining these features in customized mobile wallets may help banks keeping customers satisfied and reducing market share loss, concludes the survey that heard 605 American consumers in April.
Almost half of American consumers (48%) wish to use a mobile wallet and would consider alternative players for banking services, according to a study published on 4 June by financial researcher 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 wallets enthusiastic consumers heard 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 the option for 60% of them. Other 60% of consumers interested in m-wallets would also consider using Apple as their banking services player and digital wallet, although the company does not offer such services.
Mobile wallets make an efficient way to trim down consumers’ credit card frustration with the volume of offers they receive, keeping track of payment due dates, and their inability to track terms and conditions for each of their cards, according to the study.
Minimizing interest payments, maximising loyalty programs and ability to make better payments were rated as the most valuable advantages of digital wallets services for 65% of consumers. Other consumers said they believe m-wallets make shopping easier, faster and more fun.
Combining these features in customized mobile wallets may help banks keeping customers satisfied and reducing market share loss, concludes the survey that heard 605 American consumers in April.
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