These consumers also expressed strong interest in using a wide variety of services in their mobile wallet, such as search & shop, loyalty programs and real-time incentives. These are two major findings from a mobile wallet study conducted by Carlisle & Gallagher Consulting Group, a management and technology consulting firm serving the financial services industry.

According to the 605 U.S. consumers who participated in CG's online study in April 2012: - Forty-eight percent of survey respondents are interested in a mobile wallet and that interest is driven by both young consumers and affluent consumers. Seventy-six percent of these consumers are currently using or intend to use mobile banking today. This group is divided into two segments:

* Techno Shoppers (27%): Consumers attracted to shopping and social features of mobile wallets, and effectively using their cards to make the best possible payment decisions.
* Payment Optimizers (21%): Consumers interested in making the best payment decisions based on their financial situation, loyalty benefits and account management.

- Eight in ten consumers interested in mobile wallets responded that they would use PayPal as their mobile wallet provider. Six in ten would use Google. Six in ten would use Apple. - Five in ten Techno Shoppers would prefer to use PayPal over their primary bank as their mobile wallet provider. Three in ten would prefer to use Google. Two in ten would prefer to use Apple.

- Consumers interested in mobile wallets would consider alternative players for banking services. Eight in ten would consider using PayPal if it offered banking. Six in ten would consider using Google. Six in ten would consider using Apple.

"The competitive threat from new entrants is real. Consumers are open to considering alternatives to their primary banks to provide mobile wallets and even core banking services," said Peter Olynick, CG's Card & Payments Practice Leader. "People have already s already slowed Leader. "People have already s already slowed their use of cash and checks in favor of credit and debit cards. Within five years, half of today's smart phone users will be using their phones and mobile wallets as their preferred method for payments. These customers will be using better tools to help them optimize transaction choices. Banks need to proactively consider how their products will stay 'top of wallet' in the new mobile wallet world."

Consumer Frustrations with Credit Cards and Wants with Mobile Wallets According to the study, consumers place significant value on the benefits of various offers and incentives, from lower interest rates and cash back rewards to discounts and sales coordinated with loyalty programs. However, they are frustrated with the number of offers they receive and with their ability to track the terms and conditions for each of their cards. Mobile wallets provide a systematic way to mitigate these pain points.

- The top frustrations for consumers are the inability to manage offers and incentives, and keeping track of payment due dates. - Sixty-five percent of respondents rated the ability to make better payment choices - such as maximizing loyalty programs or minimizing interest payments as the most valued mobile wallet service.

- Eighty-two percent of Techno Shoppers responded that making shopping easier was very valuable and 62 percent believe that mobile wallets will make shopping more fun.

"Banks need to ease the pain points with their mobile wallet features to retain customers," said Olynick. "We advise banks to update their core transaction processing capabilities today so they will be ready to provide improved transaction and shopping experiences in their mobile wallets tomorrow."