Why mobile wallets are struggling
Just a few years ago, many in the banking industry predicted that mobile wallets would quickly replace consumer's use of cash and plastic. But mobile wallets haven't exactly taken off. Consumers just aren't that interested. The reality is that mobile wallets still have a long way to go.
What problem do mobile wallets solve? From the consumer’s perspective, not much. They don’t like change, and see little need to switch to a different payment method unless there’s a clear benefit.
For most consumers, using plastic is still pretty convenient. That’s why credit cards are still the most popular method of payment — especially for online purchases and more expensive items — followed closely by debit cards.
According to a study by Mintel, three quarters of consumers simply don’t see a need to change their payment behaviors, and only one quarter (27%) said they had any interest in using their smartphone as a wallet. There is significant reluctance to convert to mobile wallets — especially among women, who are roughly half as likely as men to have any interest in them.
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