Data Snacks, Member Exclusive

Data Snack: Most consumers trust mobile wallets enough to leave their physical wallets at home

  • Mobile wallets and contactless payments continue to gain adoption even as the pandemic’s effects subside globally.
  • Most consumers in the US, UK, and Australia now trust mobile wallets enough to leave their physical wallets at home, according to a recent Marqeta report.

Email a Friend

Data Snack: Most consumers trust mobile wallets enough to leave their physical wallets at home

What happens when the “new normal” becomes just plain normal? Two years ago, shifts in consumer payment behavior that were considered radical are now increasingly being considered table stakes. Following a major surge in adoption caused by the pandemic, contactless payments and mobile wallets have continued to gain market share even as the pandemic’s effects subside globally.

According to Marqeta’s recent State of Consumer Money Movement Report, 75% of people surveyed across the US, UK, and Australia used a mobile wallet in the last 12 months. While the US is slightly behind the overall average at 71%, adoption among Americans is up considerably from 64% in late 2020.

The vast majority of respondents – including 85% of Americans – also rated mobile wallets as a convenient option for making purchases.

As consumers grow trust in mobile wallets, 61% now say they feel confident enough to leave their physical wallet at home and simply carry their smartphone with them.

This confidence is twofold: it stems from a growing sense of trust in the technology, but also the assurance that comes with increased accessibility and greater merchant adoption. 81% of respondents are now convinced that whatever place they shop from will accept mobile wallet payments – and even if one place doesn’t, another one nearby likely will.

Source: Marqeta

There is a large discrepancy in confidence levels between younger and older consumers. In the US, 59% of people aged 18-24 expressed confidence in leaving their wallet at home, while only 36% of those aged 51-65 said the same. The difference is even more pronounced in the UK and Australia. The report suggests that this is because the younger consumers are digitally native, while older generations have been forced to adopt digital payments out of necessity in recent years.

The pandemic brought a global shift in behavior where even consumers who had previously been slow to adopt contactless payments were forced to do so by external events. And while this shift may have been initiated by hygiene and health-related concerns, what will ultimately make it stick is the growing expectation among consumers for a quick and convenient payment experience.

“As digital payment use exploded during the pandemic, one of the most common questions we got asked at Marqeta was whether this was a lasting phenomenon or a moment in time,” said Vidya Peters, Marqeta’s chief operating officer. “What our report suggests is that new consumer preferences have become entrenched over the last two years, with a slow build of new adoption giving way to a step change in payments. The cost for any company falling behind the expectation curve for consumer experiences may be steep.”

0 comments on “Data Snack: Most consumers trust mobile wallets enough to leave their physical wallets at home”

10-Q, Member Exclusive

Can MoneyLion gain ground in the long term on the strength of its underlying businesses?

  • MoneyLion's Q4 2022 results show a profitable December -- however, the firm saw net losses for the quarter and year.
  • Opportun reported its fourth quarter 2022 results on Monday. In the revenue line, the company reported $261.9 million, missing estimates by $1.1 million.
Sara Khairi | March 20, 2023
10-Q, Member Exclusive

Is Dave a ‘fintech survivor’ after all?

  • Dave's Q4 2022 results show that this might just be the end of a rocky road for the neobank -- meanwhile, it is bracing for 2023 head-on.
  • Apple's shares regained momentum last week following Goldman Sachs analysts' optimistic outlook -- based on the firm's new product innovation and margin expansion driven by services.
Sara Khairi | March 13, 2023
Member Exclusive

Tearsheet Pro Live #1: ChatGPT, fact and fiction: What FIs should know about the future

  • In this first Tearsheet Pro Live session, editor Zack Miller interviews a Stanford professor and a machine learning scientist about generative AI.
  • Dev Patnaik and Moses Guttmann share their perspectives on the future impact of technology like ChatGPT on financial services.
Zachary Miller | March 09, 2023
10-Q, Member Exclusive

Less focus on Bitcoin and more Cash App inflows — a sound strategy for Block?

  • A week ago, Block reported its Q4'22 results with earnings missing expectations but surpassing gross profit from a year ago.
  • The surge in the stock is owing to the firm’s strong gross profit growth, which was up 40% in Q4 2022 compared to the prior year.
Sara Khairi | March 07, 2023
10-Q, Member Exclusive

Coinbase beats revenue expectations, but will its struggles end anytime soon?

  • Last week, Coinbase reported its Q4'22 results – while the exchange has been experiencing a period of financial hardships, it continues to pivot to subscriptions and generate income through charging fees on transactions.
  • The subscription and service revenues grew 34% to $283 million, accounting for almost 50% of overall revenue for the quarter -- keeping the company afloat.
Sara Khairi | March 02, 2023
More Articles