Digital Wallet Awareness High, Despite Low Consumer Adoption
Typical products purchased with digital wallets include coffee or drinks, retail items, games and books, as well as groceries.Usage of digital wallets remains at less than one-third, even though a surprisingly high number of U.S. consumers—80 percent—recognize the technology as an alternative to cash-based transactions, according to a survey of more than 2,000 smartphone, tablet and desktop users from local search and digital marketing research firm Thrive Analytics. The top digital wallets used are PayPal (79 percent), Google Wallet (40 percent) and Apple Passbook (17 percent), with Google Wallet leading the large transaction pack with purchases of $30 or more (35 percent). Further, 70 percent of digital wallet users take advantage of one or more digital wallets at least monthly, and daily digital wallet users tend to use more types of digital wallets—three, than infrequent users, who use one. Security concerns remain the main barrier to adoption, followed by lack of usability versus credit cards or cash (37 percent) and not being top of mind as a form of payment at the time of purchase (32 percent).
"Until consumers become more comfortable with using digital wallets, particularly from a security perspective, transactions will likely continue to be smaller amounts--likely less than $20 per transaction," Jason Peaslee, managing partner at Thrive, told eWEEK. "Payments at brick-and-mortar locations are far less secure than digital wallet payments, as there are several more layers of security built into the technology. Also, with vendors like Visa and now Amazon, these providers have a vested interest in ensuring security."