Digital Wallet Awareness Rises

However, not as many consumers are actually using the smartphone option in the store.

December 04, 2013

NEW YORK – The official start of the holiday shopping season showed that more consumers know about digital wallets, but not as many are using the option at the store, Online Media Daily reports. Mobile spending grabbed 23.2% of online sales—a 43.7% bump from last year — but in-store payments with a smartphone wasn’t a major player, according to the IBM Digital Analytics Benchmark.

Around a fourth (26%) of U.S. online adults who have a cell phone have expressed interest in paying with the phone at a store, while 5% currently use their phones for payments, a new Forrester study found. That research showed that acceptance of mobile payments in stores is slowly advancing.

“Driving consumer interest and adoption is a steep, uphill climb in developed markets because the current payment systems work quite well,” said Denee Carrington, an analyst who wrote the report, “Understanding Digital Wallet Options for Your Business,” for Forrester. “Merchants that have their own wallet have the advantage of only needing to drive adoption with their customers, which is a smaller population needed to achieve scale.”

Mobile companies offering in-store only options include Isis, Passbook (by Apple) and Square Wallet. Across channels companies include Google Wallet, PayPal, and MasterPass (by MasterCard). The cross-channel digital wallets are forecast to register the highest growth.

Meanwhile, more than half of Walmart’s Thanksgiving sales traffic came from mobile channels, VentureBeat reported. The company announced that 53% of its customers that day used mobile platforms to make purchases. Three times as many people compared to last year went onto Walmart’s website to buy items for the first time. According to VentureBeat, traffic peaked at approximately 7 pm.

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