PIN is Preferred Method of Authentication for Mobile Wallets
Despite High Awareness, Interest in Mobile Wallets is Tepid at Best – and PIN is the Preferred Method of Authentication for Mobile Wallets
Phoenix Marketing International, a Honomichl Top-50 marketing research firm, today announced findings from its Credit Card Monitor Study. Nearly three-fourths of smartphone owners (70%) are aware of mobile wallets, but only 20% show much interest in using one at this time. The interest in mobile wallets that does exist is driven by Millennials and Generation X, according to a recent survey conducted by Phoenix Marketing International in the 2nd Quarter of 2013.
PIN-based authentication with a mobile wallet has substantially greater appeal over both NFC (Near Field Communication) 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. “Overall, cardholders preferred PIN over NFC and QR codes by a 3 to 1 margin, likely due to greater familiarity with PIN technology.
The Good/Bad News: Banks are Considered “First Providers” but Others are Nipping at Their Heels
Cardholders give first consideration for a mobile wallet provider to the bank that currently provides their checking account, debit card or credit card. “Nearly three-fourths (72%) of likely users would consider a mobile wallet from a bank, but about 40% would also consider Amazon or PayPal,” added Mr. Weed.
As part of its ongoing research study, Credit Card Monitor, Phoenix surveyed 3,013 credit card owners in the second quarter of 2013 on a variety of topics including card ownership, use, wallet position, loyalty and mobile wallets.
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