Analyst: UK consumers want banks to provide m-wallets

UK consumers want banks to provide them with mobile wallets instead of providers newer to financial services,  according to a report from Auriemma Consulting Group (ACG).

A survey conducted by the market research firm ranks banks and mobile payment providers as the two most preferred providers of m-wallets, with operators and OTT companies relegated to third and fourth respectively.

In a likely reflection of continued security concerns, 72.7 per cent of consumers surveyed said reputation and trust in a payment provider is the most important factor in determining which company to choose for an m-wallet solution. The Auriemma survey found that consumers expect to acquire mobile wallets from the following providers, if available:

  • 18.4 per cent of UK consumers would acquire mobile wallets from banks (e.g., American Express, Barclays, Lloyds TSB, etc.)
  • 11.6 per cent of consumers would acquire mobile wallets from digital/m-payment providers (e.g., PayPal, Skrill, Neteller, etc.)
  • 9.5 per cent of consumers would acquire wallets from mobile providers (e.g., O2 UK, Vodafone, etc.)
  • 5.1 per cent of consumers would acquire wallets from external providers (e.g., Google, Apple, Facebook, etc.)

Commenting on the results, Matt Simester, managing director at ACG, said: "The key to the success of the mobile wallet is to deliver a product that serves a clear purpose and delivers on a consumer need. In addition, banks will need to find ways to monetise the mobile wallet, to ensure it becomes financially viable in the long-term."

Simester added that to capitalise on the strong consumer interest banks will need to consider their preferred path moving forward in this space. "Banks can either invest in the development of proprietary mobile wallets, or partner with existing mobile wallet providers to serve as a funding mechanism for the wallet," he said. "Non-traditional providers, conversely, need to either prove their experience within the financial services space, or partner with existing payment providers."

For more:
- see this Auriemm release

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