Mobile Wallet Game Changers: A Glimpse into 2014's Projected Winners and Losers

Market forces are generating increased interest in mobile wallet use, creating an enormous opportunity and an attractive target for investment. The percentage of consumers who use smartphones and tablets is growing rapidly, and consumers’ willingness to use mobile wallets is rising. Financial institutions, payment networks, mobile network operators, merchants, and mobile technology providers all have a vested interest in the deployment of a profitable mobile wallet solution and are battling for their own piece of the action, stalling growth in 2013. Behind the scenes, the largest players in the space, such as Google, PayPal, Visa, Isis, and the Merchant Customer Exchange (MCX), are examining new approaches to solve the merchant and consumer equation. Adding to the uncertainty, the existing NFC, bar code, cloud and hybrid technologies are now joined by a potential disrupter – Bluetooth Low-Energy (LE). Meanwhile, new data-driven models threaten to cut out current providers. This report provides competitive analysis of 12 major wallet providers, breaking down the main changes of each provider over the last year and measuring their attractiveness in the eyes of consumers. All of the major wallet technologies are examined for their consumer and merchant scalability – the most critical metrics. And for those attempting to navigate the space, key attitudinal, demographic and behavioral data is tailored to boost marketing efforts, investments, and strategic planning in the field.

Primary Questions:

• What is the consumer readiness for mobile wallets?
• Why has mobile wallet growth stalled over the past year?
• How do mobile wallets and digital wallets differ?
• What are the differences among NFC, cloud, bar code, beacon (Bluetooth Low Energy) and hybrid mobile wallets, and what are their advantages and disadvantages? Which technology will win?
• Who are the major competitors in the mobile wallet space, and how are they different? Which has the best chance of success?
• What mobile wallet models pose the biggest risk to incumbents?

• The consumer data in this report is based on information collected from a random‐sample survey of 3,285 respondents collected online during July 2013.