The major problem, however, remains trustworthiness. A survey conducted by Marketing Sciences Brand Trust makes this problem plain: in September 2015, 17% of UK smartphone owners said they would trust no brand’s smartphone wallet app, a figure that actually rose to 20% in June 2016. So familiarity of smartphone wallet apps does not guarantee an increased interest and in fact might actively discourage those learning more about such platforms.
Meanwhile, trust has remained steady in the top-rated brands smartphone owners would trust with the information in their mobile wallets, with 43% saying PayPal would work for them in June 2016. But in fact, that fewer than half of respondents settled on any one choice suggests problems for mobile apps: With no agreement among consumers on who is trustworthy enough, it may be hard for any option to reach the critical mass necessary for a mobile wallet to take off with consumers and retailers. Notably, the no. 2 choice, “my own bank,” represents further fragmentation as not all respondents share the same institutions.
But there are features that may entice UK smartphone owners to take mobile wallets for a test drive. An October 2015 report reveals that about 45% of respondents said they were interested in mobile wallet features to collect loyalty points from such apps, and another 36% want to redeem vouchers via the app.
About three in 10 UK internet users said they don’t pay via contactless payments because of a lack of trust, according to April 2016 research from Future Thinking and Toluna. That figure skews slightly higher for males than females, and there’s also a strong correlation between older ages and mistrust.
Other research also indicates UK consumers are cautious about the changeover to mobile wallets and mobile payments. If these apps are to break through, they must solve the central problem of being trusted.
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