But just like a regular wallet, there is usually one card that’s on top. That’s the one you grab first when it’s time to pay, whether digitally or the old fashioned way. A study from Packaged Facts says that with digital wallets, debit cards, not credit cards, may get the most action.
The report, Mobile Payments in the U.S., 5th Edition, looked at industry trends and listed the following key findings:
• 48% of smartphone users who have made a payment using their phone during the past year said that as a result of mobile payments, they carry fewer cards than they used to.
• Millennials are the most likely to carry fewer cards; they are also less likely to pay using credit
• Cards that aren’t on the top of the wallet, either digital wallet or regular, don’t get used very often
The report also posed questions, such as:
• Are people who use digital wallets only loading their favorite cards onto the wallet, rather than all their cards?
• If people upload a default card to their digital wallet, is that the card they end up using exclusively? For example, in Apple Pay, do folks only use the credit card that is associated with their iTunes account?
• How do credit card points and rewards systems factor into digital wallet and credit card use?
• Could merchants start rewards programs to go with debit cards?
The report says that co-branded cards, reward cards, and other private label credit card issuers may end up losing out in the digital wallet game, if people don’t load all their cards onto the digital wallet and use all of them equally.
Using multiple cards has many advantages for customers. For example, if their rewards card offers specific cash back or points bonuses on purchases at certain stores, restaurants, or gas stations, customers can shuffle their payment methods to use the one that will give them the most benefit.
Travel rewards cards, balance transfer cards, low-interest cards, and store credit cards all offer very unique pros and cons. Using the right card for the right purchase is something that people won’t want to give up, even for the convenience of a digital wallet.
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