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.
Read Also Related News
Although more people are using mobile wallets and moving away from using cash or credit cards as their go-to payment method, consumers have still shied away from using virtual credit cards for the majority of their purchases. But companies...
The holiday season is a busy time for retailers and consumers alike—and, unfortunately, also for fraudsters. Identity theft and payment fraud abound at all times of the year, but especially during peak spending times such as...
When you realize your credit card number has been compromised and someone is out there spending money under your name, it’s one of the worst feelings there is. So Discover’s newest fraud-prevention program is good news for anyone who...
You can pay your Macy’s card online using Macy’s online pay service. Just visit their official website and follow the prompt to create your online profile and add your Macy’s card to that profile. Also, consider CheckFree, a partnering payment service. You can also pay your Macy’s American Express...
At my local bank there was an advertisement that if one enrolls in Alaska airline credit card and spends $1000 in the first 3 months then a travel companion could fly free. Is this still in effect? Does it apply to international trips and 1st class? Does the flight need to be Alaska airlines/ Virgin airlines?
Currently, the Alaska Airlines credit card has the following offer: “Annual companion fare from $121 ($99, plus taxes and fees from $22) after you make $1,000 or more in purchases within the first 90 days of your account opening”. This benefit will qualify for a round-trip coach Companion Fare on Alaska...
I once had the US Airways credit card, then the airlines merged with American Airlines and my card transitioned into the AAdvantage MasterCard with a higher annual fee and without companion pass. I use the card one year and then closed it because I don’t fly with American Airline often. Now I am looking for a credit card without an annual fee. What are my options?
You may like one of the regular travel rewards credit cards offered by major banks. Travel rewards credit cards allow earning miles on all purchases. The cards also have one-time sign up bonuses which may be enough for a domestic flight. There are credit offers without annual fees, the other offers come with rather low...
I had the US Airways MasterCard back in 2013 but had to close it because I got divorced and had some troubles with keeping up with my credit cards fees. I’m back on track now and would like to apply for this card again but can’t seem to find it anywhere. Can you help?
The US Airways Premier World MasterCard is no longer offered. US Airways removed their credit card after merging with American Airlines. Today you can apply for one of the AAdvantage credit cards offered by Citi or for a regular travel rewards credit card. Both types of credit cards will allow you to earn miles and redeem...