Carlisle & Gallagher Consulting Group have released a study revealing that banks risk losing market share to mobile wallets.
The study, “Mobile Wallet Reality Check: How Will You Stay Top of Wallet?” warns that, “The mobile wallet market is up for grabs. Over the next decade, major technology players, retail providers, mobile carriers, startups and financial institutions will fight to make the mobile wallet a reality…”
Most unsettling for banks was the finding that the vast majority of consumers interested in mobile wallets would consider using banking alternatives. In fact, if they offered banking, eight out of 10 consumers interested in mobile wallets would consider using PayPal, six out of 10 would consider using Apple, and another six out of 10 would consider using Google.
The survey of 605 American consumers, conducted in April of 2012, showed these insights at a time in which mobile wallets were still a fairly new development. Since then, they’ve become more common across the country, which gives banks even more to be worried about.
If it were conducted today, those numbers would most likely be even higher.
In their June statement, announcing the final results of the study, Peter Olynick, the card and payments practice leader for Carlisle & Gallagher, offered banks a grim picture of the future: “Within five years, half of today’s smartphone users will be using their phones and mobile wallets as their preferred method for payments.”
In order to combat this, banks can more closely examine the study’s insights: it found that 65 percent of respondents considered the most valuable part of mobile wallets the ability to maximize loyalty programs, minimize interest payments, and make better overall payment choices.
Although banks have a great deal to be worried about, they take their cues from consumers and integrate the most valued aspects of mobile wallets into their own services.
Edited by Braden Becker