andresr / iStock.com
People are warming up to mobile wallets every year. In its latest Banking and Payments Intelligence Report, JD Power found that from 2021 first quarter to 2022 In the third quarter, the percentage of American retail banking customers who said they had used a mobile wallet in the past three months jumped to 49% from 38%.
Learn: How to stay safe with mobile banking apps
Compare: Boost Your Credit Score With 3 Success Tips
Find: 60% Prefer Mobile Banking – 7 Reasons Why They Love It
However, the same report says that despite society becoming cashless and modern life dictating that everyone always carries their devices, people still prefer the convenience of cash, credit and debit cards. in 2022 the percentage of respondents who say they do not use mobile wallets because cards are more convenient has increased from 47% to 49%.
Other reasons given by consumers in the last three 2021 first quarter and 2022 months of not using a mobile wallet in the third quarter were that they had heard of mobile wallets but never created one (24% vs. 37%), were concerned about security (21% vs. 25%), and were difficult to use (5 % of 6%).
“While other barriers to the widespread use of mobile wallets continue to disappear (such as security issues), customers are increasingly satisfied with the ease of paying with plastic, and banks and card issuers should inform how they serve their customers in the coming years.” “, the report states.
In general, a mobile wallet is very similar to a physical wallet. The difference is that one is on your mobile device while the other fits in your purse or pocket. Despite the reluctance to use mobile wallets widely, they are an attractive option with many benefits.
Most payments can be made using the touch-to-pay feature of contactless credit cards, but in a world that is increasingly moving towards contactless communication, mobile wallets allow users to touch only their phone to complete a transaction.
Take our poll: How much of a sign-up bonus would you need to switch banks?
2. Cut the Clutter
As Nasdaq noted, “most of us would be perfectly fine walking around without a wallet as long as we can still buy things.” In addition, digital wallets can handle all your debit and credit cards, memberships, boarding passes and more without adding anything to carry.
Also, mobile wallets are considered more secure than physical cards. You need a password, facial recognition, or print scan before you can make a payment, and the payments themselves don’t reveal sensitive account information because they use an encrypted token.
Those who say that using cards is more convenient may not use mobile wallets. Not only can you carry a large wallet with multiple cards, but it only takes a second to wave your phone over the Near Field Communication (NFC) reader to make a payment.
See: How Many Americans Have Savings Accounts in 2023
Browse: Is Your Checking Account Too Much Money?
5. Save time
Mobile wallets complete transactions faster. Fast contactless payment eclipses paying by debit or cash every time. A study by American Express found that contactless transactions are 63% faster than cash and 53% faster than using a traditional credit card.
More from GOBankingRates