Report: FIs losing ground in mobile wallet wars
However, as consumer awareness of mobile wallets has risen dramatically, financial institutions still have an opportunity to stake a claim in this market, a Javelin study finds.
As consumer awareness of mobile wallets has risen dramatically, financial institutions have a perfect opportunity to stake a claim in this market, a report from Javelin Strategy & Research concludes.
The report, "What's in your Mobile Wallet?," also includes a scoring system Javelin developed for assessing and comparing competing wallet providers.
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The report is based primarily on information gathered from a survey of more than 3,100 U.S. consumers benchmarked for the past three years.
The report also includes case studies of two early bank entrants taking very different mobile wallet paths: Capital One Wallet and Chase Pay.
Javelin found that for the past two years, the consumer's primary bank has topped the charts as the wallet consumers would be most likely to adopt.
However, while the vast majority of FIs have sat on the sidelines, consumer preference has shifted, and both PayPal (63 percent) and Visa (56 percent) today surpass the consumer's primary bank (51 percent) as the mobile wallet providers of choice.
"The customer relationship is the trump card that issuers have to play in the mobile wallet game," said Daniel Van Dyke, mobile analyst at Javelin. "Tapping into existing card functionality that your customers have come to expect quickly sets a higher bar for third-party wallet providers."