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A Study on Digital Wallets as Consumers Carry Less CashAccording to MediaPost, consumers are carrying less cash, and this provides hope for the future of mobile wallets and mobile credit card readers.

A study found that less than a third of people carry more than $30 and half of consumers carry $20 or less.

A study done by Thrive Analytics found that while most consumers (78%) are aware of digital wallets, only about a third (32%) has ever used them. However, it differs with age. 43% of 18 to 29 year olds have used digital wallets compared to 18% by those 44 years or older.

The study also found a range of digital wallets being used. Here are the digital wallets consumers have used:

  • 79% — PayPal
  • 40% — Google Wallet
  • 26% — Groupon
  • 17% — Apple Passbook
  • 5% — MasterCard PayPass
  • 4% — Dwolla
  • 4% — Venmo
  • 4% — Isis
  • 3% — Zip Pay
  • 3% — Lemon Wallet
  • 2% — Visa V.Me
  • 2% — Bump Pay
  • 1% — Geode
  • 1% — Chirpify

Of these digital wallets, only 7% are used daily and a third (33%) weekly. Most digital wallets are accessed on a mobile phone and almost all (91%) users of them have positive experiences.

Consumers have concerns that hold them back from using digital wallets. Here are the concerns according to the study done by Thrive Analytics:

  • 46% — Security of mobile payments
  • 37% — Easier to pay with cash, credit or debit card
  • 32% — Never really thought about it
  • 18% — Don’t see the benefit
  • 8% — Don’t have necessary features on phone
  • 7% — Too time consuming to set up

It’s found that with consumers using digital wallets, almost half of consumers spend between $20 and $30 but most (59%) frequent users spend fewer than $10 per transaction. Here is the list of what consumers are more likely to less likely to purchase:

  • 35% — Coffee, drinks, snack food
  • 32% — Clothes, shoes, jewelry
  • 20% — Groceries
  • 18% — Books
  • 18% — Movie tickets
  • 17% — Games, apps, music
  • 14% — Fast food, pizza
  • 13% — General retail
  • 12% — Electronics
  • 12% — Flowers, gifts
  • 11% — Health, beauty services
  • 10% — Automotive related services
  • 9% — Travel products

Most of major retailer’s mobile commerce comes via their mobile website than their app, though the majority (53%) of consumers have used the retailers’ apps. Females use the apps for coupons and discounts while men use them for browsing and service related activities, according to the study.

Mobile wallet and payments as well as all the other major issues relating to mobile commerce will be discussed at the MediaPost OMMA mCommerce conference in New York on Aug. 7. You can check out the agenda where you also can register to attend.

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