Whether you carried it in a handbag, backpack, or your back pocket, a wallet has been a fixture in human society for centuries to carry paper money, checks, and plastic debit and credit cards.
Then, we add to the physical wallet the personal identification card like a driver’s license and all the other cards we now have - like loyalty and membership cards that are slotted into that physical wallet. Together, the wallet becomes a system for organizing and accessing all the payment methods we now use on a daily basis.
The only downside to a wallet has ever been the concern over possibly misplacing it in some way, like on the seat at the restaurant, at your mother-in-law's (who you know would never go through your personal stuff -- or there is having it stolen.
With the additional item that now dominates our pockets or handbags – our smartphones – the wallet may also seem to feel a little inconvenient.
Our mobile devices are proving their worth even more by offering a way to essentially put our wallets on our phones and leave the physical wallet at home collecting dust.
Enter the digital wallet -- a way to store all payment and personal information while also providing for a tap or scan payment system on all purchases. Other features of a digital wallet include the ability to speed the checkout process, send and store receipts, manage budgets, and collect and store coupons and retailer discounts for future use.
While there is still the risk that you could lose your digital wallet if someone takes your mobile device or you misplace your phone, unlike physical payment cards there is greater security through additional layers of protection that should ease your stress should this happen.
Despite the cool and convenient factors that come with digital wallets, there has yet to be mass adoption. Physical wallets are still with most of us. Yet, some have made the switch from physical wallet to digital wallet, so what makes them feel compelled to do this while others still prefer the traditional payment channel?
This ebook provides insights to what drives some to adopt digital wallets and what scares others to stick with their physical wallets.
Included in this ebook are reasons why some believe mobile payments aren’t for them, and includes why others believe-in mobile payments. The ebook also addresses thoughts to consider about the primary concern mobile payments, and the viewpoints about where mobile payments are headed.
Let’s start with the mobile payment users who believe in the benefits of what digital wallets offer them.
There are specific reasons why some people become early adaptors of things like mobile wallets. This group simply wants to have and use the latest technology. Most have grown up in an age where technology has dominated their lives so they are accustomed to just adopting whatever new developments are launched for commercial use as soon as they become available.
They tend to be more trusting of technology in general and like experiencing the benefits that are offered. This thought process is reinforced when they try out a mobile wallet because they soon directly experience the benefits, including efficiency, convenience, ease of use, time savings and more.
As more technology develops, this early adopter group will always advantage of the beneficial experience from this mobile wallet technology and apply it to those solutions, continuing their first adopter behavior.
These perceived benefits of mobile wallets have become real benefits:
While it sounds great and so beneficial that it makes it seem impossible to believe why anyone wouldn’t want to use a mobile wallet, the fact is there are plenty of consumers out there that have yet to even consider adoption.
The next chapter of this digital wallet covers some of the barriers to mobile wallet adoption.
The best way to explain why some people don’t want to make the switch from physical wallet to digital wallet has to do with technology and certain fears.
Everyone can agree that technology is pretty great when it works, however, when it doesn’t work, it’s horrible.
If there have been any situations where mobile wallets haven’t worked or have led to security issues, data breaches, and theft, many people take this as proof and their primary reason for not adopting the increasingly acceptable mode of payments.
Yet as with all people from the beginning of time -- all adoption of technology has been met with suspicion. That first old guy at the outpost in the west who accepted money instead of furs -- took a terrible risk. And, what about the necklaces being sold? Coins and paper that is unusable -- shivers. Yes, they felt like they took an awful risk.
This idea of technology going wrong is also quite common in the early stages of adoption. The result could be that some people may find their technology may not work while in a store.
Think back to when you first had to swipe a card at the grocery. And, now the chip. When trying to make a purchase with new technology you may have to contend with the embarrassment of other shoppers wondering why you can't put the chip-end of the card in the slot provided. But, so be it -- we'll all get used to technology has it evolves.
Beyond the technical glitches that will occur at first - like maybe you didn't charge your phone and you are standing in line with a dead phone, frozen phones and mobile payment app problems, there are other reasons why, some have mention, they have not being an early adopter of digital wallets. But, no worries, we will all figure it out:
For some non-users of digital wallets, there are even more barriers to adoption as discussed in the next chapter.
There are other reasons provided by non-users on why they don’t want to migrate to digital wallets. Primarily, this lack of adoption relates to some familiarity but a lack of experience seeing mobile wallets being used around them. As with the swipe card machine and now the chip-card, the lack of use then breeds more questions than it does establish a comfort level for these non-users.
Additionally, the other type of payment methods that have been used still work well - so mobile wallet non-users don’t see any real motivation to change - yet.
It’s that old adage of “if it ain’t broke, then don’t need to fix it.” While this is true for the majority of consumers who are still fine with carrying paper money, coins, and credit and debit cards -- don't try writing a check.
Lastly, knowledge about what mobile wallets and payments really are stands as a barrier yet to be understood by many and may take some time to remove. This is especially true among certain demographics like those over the age of 55 -- with many still thinking mobile payments are actually about online shopping. And, even if this demographic were able to easily get information that would better inform them, these non-users really are not interested in changing how they perform payments.
Numerous trends in 2016 have provided some hope that wider adoption of mobile wallets will come in the near future. In looking back on 2016, Mobile Payments Today noted some key trends about mobile payments that are critical to the bigger pictures associated with stimulating mobile wallet adoption:
"Mobile Payments Today," also offer some insights into 2017 trends that could definitely provide a way to further encourage digital wallet acceptance:
Overall, these trends work towards the same end: getting consumers to use and rely on their smartphones more. What follows from that will be a natural progression toward an understanding of the value of storing payment and personal information on the smartphone so that payments can be easily handled.
All it takes is a few tap and pay experiences, and consumers are sold on the idea. These trends for 2017 will only further facilitate that good feeling about paying through a smartphone.
Mobile wallets are gradually gaining acceptance, but there is a long way to go. In order to generate a wider adoption, specific strategies will be important to implement for both first adopters and non-users as the mobile payment environment continues to evolve.
For first adopters of mobile wallets, you don’t need to convince them of their value, but what you do need to achieve is a consistent and efficient usability level.
For non-users, merchant may experience greater challenges in convincing the older demographic of the benefits of migrating to mobile wallets.
However, in creating your strategy, center your tactics on what might motivate other demographics -- especially your true and loyal customers.
To learn more about how Due can make a mobile wallet more accessible for your customers and help you breakdown the barriers noted in this ebook, contact us today by visiting https://due.com/digital-wallet/.