NATICK, Mass. (9/27/13)--Seventy percent of smartphone owners are aware of mobile wallets, but only 20% show much interest in using one at this time, says a new study. However, the group that shows the most interest are the Millennials and Generation X--the groups of young folks that are in the bull's eye of credit unions' growth hopes.
Millennials and Generation X are driving today's interest in mobile wallets, said based Phoenix Marketing International. The Natick, Mass.-based marketing research firm conducted its Credit Card Monitor Study with 3,013 credit cardholders during second quarter.
- PIN-based authentication with a mobile wallet has substantially greater appeal than near field communication (NFC) and QR code scans. "Although the market is in early stages of development, consumers clearly prefer to enter a PIN at the merchant terminal or on their smartphone," said Greg Weed, director of card research. Cardholders surveyed preferred PINs by a 3 to 1 margin. He attributed that result to cardholders likely having greater familiarity with the PIN-based technology.
- Seventy-two percent of cardholders surveyed gave first preference for providing mobile wallet services to the financial institution that provides their checking account, debit or credit card. However, 40% said they would also consider PayPal or Amazon.
CU Wallet, a credit union-centric mobile payments/mobile wallet initiative, was launched in Los Angeles on Monday. It will combine technology with direct credit union ownership, for a mobile payments infrastructure for credit unions (See related story in Monday's News Now: 'CU Centric' Mobile Wallet Firm Launched).