Mobile wallets or e-wallets first appeared on the digital payments scene more than two years ago from major players Apple Pay and Android Pay, with Samsung Pay entering the market soon after. On 15 March 2017, Karen Webster, CEO of PYMNTS.com presented statistics for mobile wallet adoption and usage, which can be found at http://www.pymnts.com/mobile-wallet-adoption-2017/.
So, what does the data tell us? Is it just a matter of time before we are all using mobile wallets? Is mobile wallet technology really making our lives better and our payments more secure? Is it living up to the promise of killing off cash and plastic?
The short answer to these questions is “no”:
- The percentage of people trying mobile wallets has plateaued, and Apple Pay is in slight decline.
- The actual usage of mobile wallets is very low—less than 4.5%—and growth has flatlined.
- Security concerns were cited by about a quarter of those surveyed across all payment platforms.
- Nearly half of respondents indicated that they were satisfied with their current payment methods.
- Most respondents rated Apple Pay the same as or worse than swiping a credit card for ease of use (69%), speed (64%), security (67%) and convenience (59%).
The overwhelming message from the results is that mobile wallet solutions are not offering a compelling value proposition. In other words, they just aren’t different enough from tapping or swiping a credit card.
A new solution for digital payments
Existing card schemes (MasterCard, Visa, Amex, etc.) are expensive and cannot overcome the fraud risks associated with new purchase channels without drastically changing their infrastructure. And the survey shows that payments innovators, like Square, PayPal, Apple Pay and Stripe, have been slow to catch on and can only be used for specific types of transaction. The survey also demonstrates that a new solution is needed for digital payments: not just another mobile wallet or app, but a new payment scheme that takes a fresh look at how payments are processed—from the banks all the way through to merchants and consumers.
One platform. One experience.
Bluechain is a next-gen universal payment platform that enables central payment networks and financial institutions to streamline merchant and consumer transactions. Using existing infrastructures, Bluechain leverages a new security paradigm that eliminates the need for exposing cardholder data during a transaction and delivers a consistent user experience for payers and payees, regardless of how or where the payment is made: in-store, online, in-app or remote. The Bluechain payment scheme not only increases mobile adoption and safeguards consumers, but also addresses costly card fraud for banks and lowers costs for merchants, delivering unmatched value for every user.
Learn more about Bluechain’s innovative approach to mobile payments, and the benefits for all stakeholders.