For years, consumers used exclusively cash in their transactions. Then they gravitated towards credit and debit cards, as these provided an easier way to pay. Now, with the proliferation of technology and smartphones, mobile wallets are swiftly breaking onto the digital payments scene.
A mobile wallet is, essentially, a virtual wallet on a mobile device, typically a smartphone, that can store credit and debit cards in one place. Instead of carrying a physical wallet, a consumer can download a mobile wallet onto their smartphone, add all their cards onto that wallet and, subsequently, use their smartphone, just as they would use their physical cards, to buy their favorite products at their favorite stores.
Today, many consumers use their smartphones every day for almost everything. For these consumers, mobile wallets can make everything easier, and will give them one less thing to worry about: their physical wallets.
While mass mobile wallet adoption hasn't happened quite yet, there are signs that this could change very soon. Awareness has been a major issue but now, 56% of consumers know about mobile wallets and their capabilities, according to the 2016 North American Consumer Digital Payments Survey, conducted by Accenture.
But awareness is just the first step. While millennials and members of younger generations may be quick to adopt mobile wallets, older generations may not be so eager, as they’ve grown accustomed to cash and cards. Additionally, as with a lot of technological innovations, cybersecurity has been a concern. Before they adopt mobile wallets, consumers need a reason to trust them. Fortunately, many consumers are warming up to the idea.
A recent study, conducted by ACI Worldwide, found that 80% of consumers of bank-based mobile wallets are comfortable with their mobile wallet security, and that 94% of consumers believe that the information on their smartphone is secure.
Mobile wallet adoption will continue to grow, and Cardinal is ready to help merchants adopt these new products. With One Connection to Cardinal, we can Drive your Digital Commerce.