Payments

02:13 PM
Connect Directly
Facebook
Twitter
Google+
RSS
E-Mail
50%
50%

Forrester: PayPal Most Trusted Provider for a Digital Wallet

A new survey found that more consumers would trust PayPal than their bank or card issuer to be their digital wallet provider.

More consumers say they would trust a digital wallet from PayPal than from any other provider, according to a recently released survey by Forrester.

The survey of more than 4,000 consumers found that 31% of U.S. mobile phone owners are interested in or have already made mobile payments at the point of sale. Only 11% of those surveyed had actually used a digital wallet, showing that providers need to make their products more accessible and easier to adopt, Denee Carrington, a Forrester analyst and author of a report based on the survey, said.

[For More Mobile Coverage, See: How Retailers Could Dominate the Mobile Payments Market]

When asked who they would trust most as a digital wallet provider, 38% of the respondents picked PayPal, while 35% said they would trust their bank or card issuer the most. Amazon (23%) came in as the third most trusted provider.

The report goes on to recommend that banks move into the digital wallet and compete with their own wallet or a partner-branded wallet.

Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
Philip Cohen
50%
50%
Philip Cohen,
User Rank: Apprentice
12/7/2013 | 1:20:43 AM
re: Forrester: PayPal Most Trusted Provider for a Digital Wallet
"PayPal Most Trusted Provider for a Digital Wallet"
Forrester jokes, of course ...
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
12/6/2013 | 10:28:38 PM
re: Forrester: PayPal Most Trusted Provider for a Digital Wallet
Yeah it is a pretty marginal difference. But again you have to keep in mind that PayPal has gained experience with digital wallets in the last couple of years that could prove to be valuable in the long run.
Nathan Golia
50%
50%
Nathan Golia,
User Rank: Author
12/6/2013 | 9:38:15 PM
re: Forrester: PayPal Most Trusted Provider for a Digital Wallet
It's only a 3% difference between that and second place, which doesn't surprise me. I know some "power users" of PayPal that have complained about its security and customer service and referred to their bank or credit card issuer as "bailing them out." But I guess the more often you use a service, the more opportunity there is for a bad experience.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
12/5/2013 | 2:51:37 PM
re: Forrester: PayPal Most Trusted Provider for a Digital Wallet
From what I could tell from the research it seemed that the consumers picked brands that they associate with shopping and paying for things. PayPal and Amazon are associated with commerce for most consumers. But Google is associated with email, search and getting directions.
Byurcan
50%
50%
Byurcan,
User Rank: Author
12/5/2013 | 1:45:52 PM
re: Forrester: PayPal Most Trusted Provider for a Digital Wallet
Yeah Google Wallet has really not taken off since it was launched, obviously no mobile wallet has (how many people do you see paying with Isis?) but the fact Google Wallet has been around for a couple years now and hasnt gained traction is surprising.
NJ_trader
50%
50%
NJ_trader,
User Rank: Apprentice
12/5/2013 | 1:31:45 PM
re: Forrester: PayPal Most Trusted Provider for a Digital Wallet
PayPal makes sense, since consumers are very familiar with that brand. I am surprised, though, that Google Wallet did not show up.
Kelly22
50%
50%
Kelly22,
User Rank: Author
12/4/2013 | 10:26:13 PM
re: Forrester: PayPal Most Trusted Provider for a Digital Wallet
I see, I was just going by the number of smartphone users. I didn't realize mobile penetration at point of sale was on the low side in comparison, that helps put the results in perspective.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
12/4/2013 | 9:56:36 PM
re: Forrester: PayPal Most Trusted Provider for a Digital Wallet
I actually thought it would be lower given how low mobile payments penetration is at the point of sale in the U.S.
Kelly22
50%
50%
Kelly22,
User Rank: Author
12/4/2013 | 9:13:01 PM
re: Forrester: PayPal Most Trusted Provider for a Digital Wallet
I'm a bit surprised that only 31% of mobile phone owners are interested in/have used mobile payments. Given the number of people who use smartphones, I'd think that number would be higher.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
12/4/2013 | 8:42:44 PM
re: Forrester: PayPal Most Trusted Provider for a Digital Wallet
Remember Amazon doesn't even have a mobile wallet, so the fact that they're higher than other players who do have one (Google) is kind of impressive.
Page 1 / 2   >   >>
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology - August 2014
Modern core systems are emerging as the foundations of effective channel integration and customer engagement initiatives.
Slideshows
Video
Bank Systems & Technology Radio