The death of the lowly wallet has been predicted frequently by mobile payment providers and it’s still hanging around. But now PayPal is providing some data on why it thinks the wallet is “doomed.”
PayPal released the findings from a global study it recently commissioned on consumers’ attitudes towards various payment methods. Participants came from the U.S., the U.K., Germany, Canada and Australia. And based on their responses, the future of the wallet is indeed uncertain.
According to the study, a large majority (83 percent) of respondents said they don’t want to have to carry a wallet and would prefer a digital payment method. Germans were the most anxious to ditch their wallets, with 90 percent saying they want another option. The U.S. was next with 86 percent of Americans willing to get rid of their wallets.
A frequent issue for respondents, and one fueling a desire for another payment option, is a simple lack of cash. More than two-thirds of U.S. respondents (68 percent) reported they have been unable to pay for something because they didn’t have cash with them, PayPal said. Thirty percent said it had happened frequently.
The desire for a digital alternative is also due to consumers finding themselves “getting stiffed” by friends, PayPal said, offering that a peer-to-peer payment method would somehow solve that issue (and good news for Google’s new P2P via Gmail product and Square’s soon-to-be-launched Square Cash.) More than half of Americans (54 percent) and more than half of Australians (57 percent) said they had been stiffed by a friend over a debt.
The most common locations where respondents, regardless of their country of origin, wished they could get rid of their wallets included the gym, laundromat and grocery store, PayPal said.
Not surprisingly, parking meters were also mentioned by respondents as a transaction where a cash-less alternative was desirable. Nineteen percent of Americans said they wanted a digital way to feed a parking meter.
So what payment methods are wallet-haters looking for? In the U.S. 29 percent of respondents said they would choose a smartphone over a wallet if they could only bring one item when going out, PayPal said. Thirty-two percent of British respondents said a smartphone is preferable to a wallet.
“The consumer sentiment this new survey shows is more proof that we’re truly on the cusp of a transformational moment with regards to how consumers will make everyday financial transactions,” said PayPal President David Marcus on the company’s blog. “People are ready for the day when the notion of carrying around a bulky wallet to pay for things will seem as antiquated as Gordon Gekko’s enormous mobile phone in the movie Wall Street seems to us today.”
PayPal’s wallet survey was conducted by Wakefield Research and included 5,000 people — 1,000 credit and debit cardholders, aged 18 and older in each country. The online survey was conducted between April 26 and May 13.
Republished from: www.mobilepaymentstoday.com