A recent survey of smartphone users revealed that despite a growing number of mobile payment technologies available, half of the respondents had no idea they even existed. However, the Carlisle & Gallagher Consulting Group believes that within the next five years, half of all smartphone owners will be paying for common items, including food and gas, with digital wallets. They are already growing in popularity overseas; Ray Ledford frequently travels between the US and his home base in Japan and says that it’s not uncommon to see Japanese paying with their phones. Another user, Mark Logan, says that if it could store his driver’s license and other items, he’d give up his physical billfold entirely.
What’s the Big Idea?
Several major hurdles will need to be cleared before digital wallets gain a real foothold in the US market. Currently there are many different ways to pay with a mobile device, some of which require hardware that isn’t commonly found in American phones. Then there’s the matter of security, which survey respondents consistently put at the top of their issues list. However, unlike physical wallets, phones can be locked or shut down, as Google Wallet user Jared Jennings points out: “I trust my phone more than my pocket, anytime.”