While a number of analysts have predicted digital wallets will revolutionize payments, at this point virtual payments remain largely misunderstood by consumers. According to data collected by business analytics firm comScore Inc., awareness of digital wallets beyond PayPal Inc. is lacking.This is based on two surveys of an opt-in panel of 1 million U.S. consumers conducted in November 2012.
"Digital wallets represent an innovative technology that has not yet reached critical mass among consumers due to a variety of factors, including low awareness and a muddied understanding of their benefits," stated Andrea Jacobs, comScore Payments Practice Leader.
According to the 48-page study titled Digital Wallet Road Map 2013, the digital wallet landscape remains fragmented among providers because of low consumer adoption of most alternatives; just 12 percent of consumers claimed to have used a digital wallet other than PayPal.
However, the study suggests usage of other digital wallet brands will likely increase as education and awareness spread. Following are highlights from the report:
|Digital wallet offerings||Consumer awareness||Consumer usage|
|PayPal||72 percent||48 percent|
|Google Wallet||41 percent||8 percent|
|MasterCard PayPass Wallet||13 percent||3 percent|
|Square Wallet||8 percent||2 percent|
|V.me by Visa||8 percent||2 percent|
|Isis||6 percent||1 percent|
|LevelUp||5 percent||2 percent|
|Lemon Wallet||5 percent||1 percent|
"This study delves deeply into the mindset of consumers with respect to their potential use of digital wallets, in addition to helping size the market opportunity," Jacobs said. "The study also provides guidance on how digital wallet providers, marketers, developers and retailers can contribute to growing adoption of this technology."
In recent research, eMarketer Inc. ranked nations by estimated business-to-consumer (B2C) e-commerce spending - which, in 2012, surpassed $1 trillion globally for the first time.
A Forrester Research Inc. report titled U.S. Mobile Payments Forecast, 2013 to 2017 predicted consumer mobile payments will reach $90 billion by 2017, representing a compound annual growth rate of 48 percent from the $12.8 billion spent in 2012. The report segments mobile payments into three categories: in-store proximity payments, mobile commerce and mobile peer-to-peer payments. In the final analysis, Forrester projected in-store mobile payments will outpace the growth of mobile commerce as a market segment in the years ahead.
In the 2013 Trustwave Global Security Report, experts at Trustwave combed millions of passwords, hundreds of businesses and billions of emails to expose the most critical and emerging security threats to organizations globally. The report reveals common web- and mobile-based attack methods, employee-based risks, cloud computing and bring-your-own device vulnerabilities; it also provides regional perspectives.
A Mercator Advisory Group report titled CNP Fraud and Mobile Devices: What's the Risk? explores how to prevent card-not-present (CNP) fraud in retail environments where devices with differing operating systems and functionalities present unique challenges for mitigating risk across multiple consumer touch points. The report offers an analysis of CNP fraud prevention techniques in the mobile context, along with vendor solutions.
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