What's a Wallet, and How and Why Do You Use It?

There are reasons why Google Wallet, cash, debit and credit cards and checks exist, and why some consumers prefer to use one or a few of those, rather than others, as payment tools. Those habits will be hard to change. 


To design a successful mobile payment process therefore requires changing stubborn end user behaviors.


To cause change, mobile payment proponents also must understand those barriers, including the values and attitudes shoppers have when they choose to pay for purchases one way, rather than another. 

A study conducted by Ipsos for American Express broadly suggests three payment "personae," with distinct sets of values and payment preferences. They also therefore have key objections or attractions to using mobile payments.


If 69 percent worry about security, that objection has to be overcome. But that isn't a primary objection for every user. "Techies" will use any tool that is convenient, and prefer the "bleeding edge." Security isn't a big concern; coolness is. Cash isn't as "good" as using a smart phone, because it is easier to track expenses when using either online or smart phone payment methods. Credit cards are the current default payment method. 


For many shoppers, though, security probably is the biggest objection. Identity theft is a big issue, so brand preferences lean towards their established financial institutions. "Convenience" is not as strong a value for this sort of buyer. For this persona, cash and credit cards are central and preferred payment methods, though there remains some use of checks.


For others, the chief concern is an ability to manage and understand spending. Debit cards and cash currently are the preferred payment methods, because each is viewed as helping with the budgeting of spending. So convenience, security and control are key values for different parts of the user base. 


But addressing any one of those key values does not necessarily drive interest for the other two types of personae. "New" is attractive to techies. 


"Safety" is the big value for "security buffs," so "fear of compromised data" is the key objection. 


Spending control is the big driver for "budget bosses" so fees are a big objection. (click on the image to see the full chart).