Consumers Want Financial Institutions Involved in Electronic Wallets
Salisbury, MD (PRWEB) November 14, 2012
Phoenix Payments, a Phoenix Marketing International practice, today announced the results of its 2012 Consumer Payments Preferences and Usage Study: Electronic Wallet Opportunities and Challenges. The study findings include a detailed report on electronic wallets , including consumer preferences, attitudes, and usage/willingness to use three different business models of electronic wallets: Tap-and-Pay, the Paypal Model, and a Financial App for a smart phone or pad device. (NOTE: An electronic wallet is generally described as a portable device, usually a smart phone, that lets you make purchases, bill payments or transfer money electronically anytime, anywhere and can also include non-financial applications such as loyalty and rewards applications.
Roughly one-third of all households and one-half of smart-phone users are aware of electronic wallet products. One-quarter of households hold positive views toward electronic wallet products, approximately one-third are neutral with the remainder being negative. Most consumers holding negative views are concerned about the security of the products.
Willingness to use varies by numerous segments. One-in-six of all households indicate they would use the products if they were made available to them. This translates to 1-in-5 of households who were previously aware of the products and 1-in-4 of existing smartphone users.
More than three-quarters of interested users would prefer to obtain these services from their primary bank or financial institution.
“There is clear early demand for these services, and a clear willingness to obtain them through existing financial relationships,” states Leon Majors, President of Phoenix Payments. “But providers need to narrow the focus to the key services consumers wish to attach to these products.”
The study also revealed what consumers want in an electronic wallet beyond just a new way to make a purchase. Phoenix tested the appeal of 17 different add-on services including loyalty, rewards, information management and transaction-based features.
“Top features focused on managing rewards, managing bank balances and tracking transactions, indicating a clear need for help in managing an increasingly complex payments environment,” continues Majors. “Providers of all types, financial, retail and others have overwhelmed consumers’ ability to manage all of the services and programs they use…consumers are walking around with 10…15…or even 25 loyalty or rewards cards, they are not sure which one to use when, with the result being it is optimal for no one…not the consumer and not the provider. Add to that multiple financial relationships and you have a recipe to drive demand for a new targeted solution.”
Phoenix’s annual Consumer Payments Preferences Study was conducted online in August 2012, surveying slightly more than 4,200 consumers with a national representation of the online U.S. population stratified on an age/income Census distribution. For sample detailed charts on this study, please click here.
About Phoenix Payments Practice
Phoenix Payments Practice, part of Phoenix Marketing International, is one of the most comprehensive financial consulting practices in the US; having the only integrated payments program that tracks the entire financial transaction market through large-scale quantitative research, specializing in issues that are of strategic importance to retail and corporate financial services and technology vendors.
About Phoenix Marketing International
Founded in 1999, Phoenix Marketing International is one of the fastest growing marketing services firms in the United States and partner to many of the largest companies in the financial services, consumer package goods, automotive, healthcare, media, technology and travel and leisure industries worldwide. With national offices, Phoenix offers advanced advertising, brand measurement, and direct marketing expertise.
Phoenix Marketing Contact:
Leon Majors, President
Phoenix Payments Practice
410-860-2005
Leon.Majors(at)Phoenix(dot)com
Mark Sutin, Vice President
Phoenix Financial Services
609-261-6332
mark.sutin(at)phoenixmi(dot)com
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