The Digital Wallet Debacle

Mobile technology has reached another milestone in recent years with the introduction of the digital wallet. Ideally, this is a terrific idea; instead of carrying your credit or debit card with you whenever you have to go shopping, you simply pay for your purchases using your smart phone. Google is at the head of this new trend, attempting to phase in its Google Wallet app and Android Pay in favor of predecessor Google Checkout. As convenient an idea as the digital wallet is, many retailers are hesitating to climb on board. And there are a few reasons why they’re not more excited about it, one being that, because the digital wallet has no predecessors like it, there’s nothing to compare it to, and therefore, no way to quantify it.

As well, the digital wallet is only being offered on a very limited basis at present, making customer reaction hard to gauge. The growth and adoption rate of this type of technology will depend on the quality of mobile marketing and consumer loyalty. Indeed, being able to pay for anything with just a smart phone may not be enough to get customers to use the technology; some form of incentive, whether it be a discount or reward program may have to be put in place.

The reluctance to adopt this technology may also be due to the increasing threat of malware that is targeting mobile devices. But this threat, like other cyber attack threats to personal computers, is expected to diminish with the advent of new and more secure mobile technology.

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