One thing is certain, most people in 2018 couldn’t survive without their cell phones. From ordering food, to sending emails, to storing pictures and music – smartphones provide unprecedented convenience. But how about using our phones as a method of payment? Ditching our debit cards and storing all of our card information on our phones?
Digital wallets allow users to store payment card data within a smartphone app allowing them to leave their actual wallets behind. But despite how convenient this new technology sounds, consumers don’t seem to be terribly enthusiastic about employing it. A recent Gallup Poll reported that only 13% of adults in the US have digital wallets on their phone, while 76% have never or rarely used their digital wallet app.
Why Are Consumers Reluctant to Use Digital Wallets
The poll reports that over half of nonusers surveyed cited security as their primary reason for avoiding digital wallets. As if losing your phone isn’t already bad enough without making you financially vulnerable on top it. 21% of people polled reported they simply just didn’t know enough about digital wallet technology, while others simply didn’t understand the value proposition of using a digital wallet over a credit card.
How Can Providers Change Consumer’s Minds About Digital Wallets?
Gallup poll statistics suggest that one reason consumers have not picked up on the digital wallet trend is because the number of retailers accepting digital wallet payments is limited. Consumers are not yet convinced that transitioning from cards to mobile payments is reliable. Experts also suggest that digital wallet providers need to do a better job at adding value to the digital wallet experience. Without providing consumers with a significant incentive for using digital wallets over credit cards, and marketing that value proposition effectively, the technology will have a difficult time gaining traction.
What Are The Forecasts?
Business Insider predicts that US mobile payment volume will be $503 billion by 2020. The article, based on a 2016 report also suggests that they key to gaining momentum in mobile payments will be developing add-ons and loyalty programs in conjunction with payment apps. The widely used Starbucks mobile pay app is a great example of an app that has gained popularity through added value. The Starbucks app not only allows users to collect “stars” as reward points, but also allows customers to order ahead, avoiding long lines for morning coffee.
How Can Businesses Start to Accept Digital Wallet Payments?
With a variety of Near Field Communication (NFC) capable credit card terminals on the market, smart terminals like the Poynt Smart Terminal allow businesses to accept Apple Pay, Android Pay and more with the ability to add multiple tools and applications for inventory management, loyalty programs, and more.
For more information and a free demo of the Poynt Smart Terminal Contact Us at NTC Texas today.