The way British consumers spend has the potential to be revolutionised by the digital wallet, according to an April 2016 report from global consumer intelligence firm Mintel.
Acting as a virtual replacement to the physical wallet, digital wallets store users' personal financial details, and are designed to simplify the payment process both online and in-store. Consumer attitudes towards the technology, as revealed by the report, include:
- Convenient Cash: Shoppers are increasingly embracing the digital wallet. More than one-quarter (27%) of smartphone owners say that paying with their phone is more convenient than presenting a physical credit card, debit card or cash.
- Prompt Action: Those interested in using digital wallet services may require further encouragement and information if they are to adopt the technology. Two in five consumers who don't use a digital wallet, but express an interest in doing so, say this is simply because they haven't yet signed up for the service. Meanwhile, around one in 10 (11%) were not aware the service existed, suggesting a need for developers to promote these platforms and provide guides on how to use them.
- Security Concerns: Three-quarters of smartphone owners say they'd worry about fraudulent transactions, should their phone be lost or stolen. Brands need to do more to alleviate security concerns if the technology behind digital wallets is to reach a wider consumer base.
For more on understanding consumer attitudes towards managing their finances and how best to engage them, see Strategies for Millennial Finance, Bank Marketing Strategies and Moderate Millennials: Generation Staid.