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Security the Main Barrier to Digital Wallet Usage, Study Shows

September 3, 2024         By: Ellen Red

Security remains the main obstacle to digital wallet adoption, this according to the 2014 Digital Wallet Usage study conducted by Thrive Analytics.

Thrive Analytics is a digital marketing research and customer engagement strategy consulting firm, and their 2014 Digital Wallet Usage study surveyed over 2,000 representatives of the U.S. adult population.

The Thrive Analytics study revealed that while 80 percent of U.S. consumers are aware of digital wallets, only less than one-third of American consumers adopt the digital wallet technology.

The low adoption of mobile wallets is mainly due to security concerns, the Thrive Analytics study revealed.

Jason Peaslee, Managing Partner of Thrive Analytics, said in a statement, “An overwhelming majority of consumers acknowledge the presence of digital wallets, however a minority have actually used them despite fewer shoppers carrying cash today.”

Fifty percent of U.S. consumers, mostly on-the-go females, carry less than $20 on a regular basis, the study showed.

Sixty percent of digital wallet users though are males, despite the fact that they carry more cash than females.

The study further revealed that 18 to 29-year-old females are more likely to use merchant digital wallet apps for price shop (56 percent) and discounts/coupons (72 percent) compared to men.

According to the study, men tend to use merchant digital wallet apps for paying bills and searching for products and contact information of retailers.

Gartner, Inc., a leading information technology research and advisory company, reported that starting in 2017, mobile security will become a higher priority for consumers.