Online consumers favour financial institution-hosted e-wallets

Online consumers favour financial institution-hosted e-wallets

A new study commissioned by MasterCard International has found that experienced users who shop online with an e-wallet would prefer to use an e-wallet hosted by their financial institution.

The study, "Understanding the E-Wallet User: A Market Research Report," analyses the entire e-wallet experience, focusing on user attitudes towards different types of e-wallet providers and exploring desired e-wallet functionality.

The majority, 53 per cent, preferred e-wallets hosted by financial institutions over those sponsored by Internet companies (36%) and Internet service providers (11%). E-wallet users associated issuer-provided wallets with greater security, privacy and merchant acceptance. E-wallet users also expressed strong interest in having convenient access to other services provided by financial institutions' e-wallet applications, for example person-to-person payment support, checking account balances, or balance transfers.

The survey found fewer than two-in-ten online shoppers currently shop with an e-wallet from their PC desktop, which MasterCard highlights as a tremendous opportunity for e-wallet issuers.

The vast majority of e-wallet users polled, 94 per cent, were satisfied with their e-wallet experiences, reporting that the tool helped them with their online shopping experience. Additionally, more than 80 per cent of the respondents stated they were likely to use their e-wallets within the next three months.

The study also indicated that respondents who shopped with an e-wallet issued by a financial institution or credit-card company demonstrated greater loyalty to their e-wallet issuer's own brand card. Twenty-three per cent of the respondents said they have increased their online spending as a result of using an issuer's e-wallet. Moreover, close to three-in-ten online shoppers who have not yet been offered an e-wallet by their credit card provider or financial institution anticipated an increase in their online spending should one be made available to them.

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