August 15, 2014
It’s no secret that mobile digital wallet technology is faring better in the US than in the UK; here in Boston, I use my LevelUp app at more than half of the retailers I visit (the app tells me I’ve visited one vendor 122 times!). However, only a few providers — including PayPal InStore, V.me by Visa, and Paydiant — are serving UK consumers. (Will Amazon be next?)
To understand the popularity gap for mobile digital wallet technology between the US and the UK, Forrester leveraged its Technographics® 360 research approach to get a holistic view of consumers. By analyzing data from our European Technographics Retail Survey, 2013, UK ConsumerVoices Market Research Online Community, and UK Consumer Technographics Behavioral Study, November 2013 to March 2014, we evaluated desired features, strongest barriers, and current behavior associated with mobile digital wallet usage across UK consumers.
Our data shows that security is still a major concern among UK consumers, but the features they want in a mobile digital wallet are associated with an improved customer experience: These features make the purchase process more organized and convenient for customers, while also helping them save money along the way:
Interestingly, users of the PayPal app — an early front-runner in mobile digital wallet technology — are more likely to use financial/banking and e-tailer apps in general, suggesting that other users of these apps may be prime targets as potential early adopters of mobile wallet technology.
According to a recent report by my colleague Denée Carrington, digital wallet technology is poised to transform the consumer purchase journey. Barriers to using digital wallet technology, including security concerns and an unwillingness to make mobile transactions, will continue to shrink; as “the prevalence of highly valued benefits continues to rise, consumer adoption will rise, as well.”
It’s only a matter of time before awareness gives way to adoption. Perception of value is key, so we advise businesses to push out high-value features that mitigate security concerns while introducing new features that ensure a seamless, convenient customer experience.
To view our Technographics online survey, behavioral, and online community findings regarding mobile digital wallet technology, please click on the slideshare below.