Digital wallet gains short-lived?
While reports this year have indicated digital wallets are finally gaining some real traction with consumers, a new study suggests those gains may be short lived if certain obstacles can’t be overcome.
To continue to grow, payments analysts stress that still-limited numbers of NFC-ready terminals remain a barrier, and greater incentives for usage are needed, as is as consumer education around the wallets themselves.
A new study from marketing and analytics firm Adjust GmbH and App Annie reveals mobile-payments apps have a much harder time retaining users than banking apps. Globally, just 16% of users on average return to a payment app the day after install, and 30 days later that number has dipped to just under 6%, the report states.
“I believe these numbers show that people are willing to try a mobile wallet, so you see some strong initial figures,” said Bill Hardekopf, CEO of LowCards.com. “But after using a mobile wallet they just aren’t completely sold on it. When it comes to convenience, it just doesn’t seem that much of a time saver to have to input your credit card information to make a transaction. Then there is the security concern. Consumers may be put off by having their credit card information stored in their phone.”
continue reading »