As a channel, mobile commerce promises to make shopping easier to consumers. A key component of this experience will be the digital wallet. Several well-known merchants are competing for market share as mobile commerce grows but they’re finding they’ll need some great new ad campaigns to differentiate themselves from the competition.
Shoppers are still getting used to the idea of paying with a mobile wallet. Early digital shoppers have been using services like Paypal for some time now. And, as mobile has grown, these services, especially Paypal and Google, are moving to expand their offerings to a multichannel environment. The same is true of large traditional service providers like American Express and Visa. But, are consumers taking note of the new availability of mobile digital wallets?
About 50% of shoppers do not see any advantage to using mobile phones as payment devices. Those consumers who are tempted to use mobile wallets to buy items in a store say the technology should offer them the following benefits:
- Convenience: 32%
- Automatic accrual of coupons to phone/wallet to save time and money: 28%
- Speed up store exit: 24%
For now, consumers also have an old-school mindset about who should be providing mobile payment services. Regardless of age, over 70% of surveyed consumers expect their primary bank to be the digital wallet provider. About 23% prefer PayPal with the largest number, 28%, being in the 26–34 year-old age group. 15% call Google the top choice with 26–34 year-olds, 24%, again leading this group. Interestingly, 26–34 year-olds are also the group with the lowest percentage, 69%, expecting the mobile wallet service to be provided by their key banks.
PayPal’s Patrick Gauthier acknowledges the challenge service providers face in getting consumers to adopt mobile wallets, saying, “This is about money and how I manage and use it. It’s about being able to connect the various accounts and sources of value and sources of information that the consumer uses.”
With so many players looking to adjust the consumer behavior, it’s likely that marketers will be rolling educational and branding campaigns on how digital wallets can benefit them in general and how their specific services excel in this market.[Source: Mobile Wallets or Fully Digital Wallets? eMarketer.com. 11 Oct. 2012. Web. 24 Oct. 2012]