Digital wallets have a long way to go in building consumer awareness
TweetFollow Us on Twitter

Digital wallets have a long way to go in building consumer awareness

ComScore (www.comscore.com), a company that "measures the digital world," has released the "Digital Wallet Road Map 2013," a study that measures consumer awareness, perceptions and intent to use current digital wallet offerings.

The study found that digital wallets, which store a virtual copy of the contents of a consumer’s physical wallet to facilitate online or offline retail transactions, only had awareness among 51% of U.S. consumers for wallets other than PayPal.

"Digital wallets represent an innovative technology that has not yet reached critical mass among consumers due to a variety of factors, including low awareness and a muddied understanding of their benefits," says Andrea Jacobs, comScore Payments Practice leader. "This study delves deeply into the mindset of consumers with respect to their potential use of digital wallets, in addition to helping size the market opportunity. The study also provides guidance on how digital wallet providers, marketers, developers and retailers can contribute to growing adoption of this technology."

The study is based on a unique research design combining comScore’s opt-in panel of one million U.S. consumers and two separate surveys of more than 2,000 U.S. Internet users conducted in November 2012. To better account for the intent of consumers to use digital wallets, the study first removed the awareness gap that existed between users and prospects by introducing respondents to various digital wallet offerings first-hand.

Consumers are receptive to digital wallets, but require more education of the benefits

The current digital wallet landscape remains fragmented among providers because of low consumer adoption outside of PayPal, with only 12 percent of consumers claiming to have used a digital wallet other than PayPal. However, study results indicated that the digital wallet market opportunity could eventually reach one in two consumers.

One clear barrier to use of digital wallets is that the concept is often difficult to convey and prone to misinterpretation. Even after being asked to review the websites of particular digital wallets, respondents across all wallet brands still scored an average of just 45% in terms of demonstrated level of understanding.

Security remains a top concern that can be addressed more clearly by wallet marketers

The study revealed that security remains a top consumer concern, but that a significant portion of consumers are not aware of security features inherent in digital wallet usage. While 93% of consumers would prefer to use a digital wallet that has to be unlocked before use, an average of just 57% of respondents across the brands studied realized -- after having reviewed the digital wallet website -- that this locking feature was available.

Some digital wallet providers were more successful than others in communicating the availability of this feature, with 71% awareness among Lemon website visitors versus 42% among LevelUp website visitors. The ability to improve communications of features addressing consumer concerns, such as security, could remove an important hurdle to adoption.

"Low awareness, understanding of benefits and availability among retailers are among the key barriers to adoption of digital wallets. While these impediments may seem like a steep hill to climb, we have seen this story play out before in the financial services industry. There was a time when consumers were reluctant to use ATMs for similar reasons, and, today, look at how far we’ve come since the 1970s and 1980s," adds Jacobs. "It would seem that the future is bright for digital wallets, but it will require deliberate execution of strategies such as sound marketing for this technology to realize its full potential. In order to win over consumers, wallet marketers, providers, developers and retailers must work together to address each of the aforementioned barriers."

The Digital Wallet Road Map 2013 is a report based on comScore’s research panel of one million U.S. consumers and attitudinal insights gained from two comScore surveys of over 2,000 U.S. online consumers, each conducted in November 2012. For more info go to http://www.comscore.com/digitalwallet2013 .

 
AAPL
$95.60
Apple Inc.
-2.55
GOOG
$571.60
Google Inc.
-15.82
MSFT
$43.16
Microsoft Corpora
-0.42
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Dawn of the Immortals Review
Dawn of the Immortals Review By Jennifer Allen on July 31st, 2014 Our Rating: :: RESPECTABLE EXPLORATIONUniversal App - Designed for iPhone and iPad Dawn of the Immortals might not re-invent the wheel, but it does tweak it a little bit when it comes to MMO gaming.   | Read more »
80 Days Review
80 Days Review By Jennifer Allen on July 31st, 2014 Our Rating: :: EPIC ADVENTUREUniversal App - Designed for iPhone and iPad A fantastic and fascinating re-envisioning of the classic novel by Jules Verne, 80 Days is a delightful piece of interactive fiction.   | Read more »
Battleheart Legacy Guide
The world of Battleheart Legacy is fun and deep; full of wizards, warriors, and witches. Here are some tips and tactics to help you get the most enjoyment out of this great game. | Read more »
Puzzle Roo Review
Puzzle Roo Review By Jennifer Allen on July 31st, 2014 Our Rating: :: PUZZLE-BASED TWISTUniversal App - Designed for iPhone and iPad A different take on the usual block dropping puzzle game, Puzzle Roo is quite pleasant.   | Read more »
Super Crossfire Re-Release Super Crossfi...
Super Crossfire Re-Release Super Crossfighter Coming Soon, Other Radiangames Titles Go 50% Off Posted by Ellis Spice on July 31st, 2014 [ | Read more »
Hexiled Review
Hexiled Review By Rob Thomas on July 31st, 2014 Our Rating: :: HEX SELLSUniversal App - Designed for iPhone and iPad In space, no one can hear you… spell? Hexiled is a neat concept for a word scramble puzzle, but it doesn’t go too far beyond the basic premise.   | Read more »
Summoners War: Sky Arena Passes 10 Milli...
Summoners War: Sky Arena Passes 10 Million Installs! Posted by Jessica Fisher on July 31st, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Deep Loot Review
Deep Loot Review By Jennifer Allen on July 31st, 2014 Our Rating: :: DIVE DEEPUniversal App - Designed for iPhone and iPad Dive deep in this fun explore-em-up that’s a little grind heavy but ultimately quite entertaining.   | Read more »
Despicable Me: Minion Rush is One Year O...
Despicable Me: Minion Rush is One Year Old, Gets its Biggest Update Yet Posted by Jennifer Allen on July 31st, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Fish & Shark Review
Fish & Shark Review By Jordan Minor on July 31st, 2014 Our Rating: :: FLAPPY FISHUniversal App - Designed for iPhone and iPad Fish & Shark’s beauty is only scale deep.   | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.