While some drivers of digital wallet usage have trended positively (albeit slowly) such as consumer confidence in financial information security, next 90-day consumer usage projections have remained stagnant at roughly 1-in-4 consumers. A 4-point rise this past quarter to 29% marks a positive deviation from this trend and denotes the highest ever September reading. This positive movement is likely to continue into the 4th quarter bolstered by heightened shopping over the holiday season.
Though this positive uptick could prove temporary, digital wallets appear primed for increased adoption moving forward. We anticipate this will be driven both by digital wallet providers offering incentive programs and improving the user experience, as well as increased merchant acceptance across brick and mortar, mobile and online storefronts.
The biggest players Apple Pay and PayPal remain on top in terms of planned and current use as well as satisfaction, however the field has become more crowded in recent years with banks and retailers joining the fray armed with their own payment apps. Google Pay, formerly Android Pay, rounds out the top three wallets.
While concerns surrounding financial data do appear to be lessening quarter-over-quarter, they remain the largest barrier to adoption and usage. This trend highlights industry-wide messaging issues on this subject. Wallet providers must reverse this sentiment in order to see widespread market penetration, while continuing incentive campaigns and highlighting ease of use.