Two recent studies on digital and mobile wallets offer contrasting conclusions
Recent research presents a split picture: one study highlights PayPal’s current dominance in digital wallet use, while another predicts Google will ultimately lead the mobile wallet market.
comScore’s Digital Wallet Road Map shows that although many consumers know about Google Wallet, PayPal currently leads in actual usage and brand recognition.
According to the comScore survey, PayPal is the most widely recognized digital wallet, with 72% of respondents aware of the service. Google Wallet registered 41% awareness, and MasterCard PayPass was recognized by 13% of respondents.
When it comes to actual use, the gap widens: 48% of those surveyed reported using PayPal. Usage of other digital wallet technologies lagged far behind, with Google Wallet at 8% and MasterCard PayPass at 3%.
Low penetration remains a concern, but awareness is a prerequisite for adoption: if consumers don’t know about a service, they won’t start using it.
“While these impediments may seem like a steep hill to climb, we have seen this story play out before in the financial services industry,” said Andrea Jacobs, comScore’s payments practice leader. “There was a time when consumers were reluctant to use ATMs for similar reasons, and, today, look at how far we’ve come since the 1970s and 1980s.”
In contrast, a survey by payments provider ACI Worldwide, conducted among attendees at the 2013 NRF conference, suggests industry sentiment favors Google as the likely long-term winner in the mobile wallet space.
Released in January, the ACI Worldwide research found that 53% of respondents believed Google would prevail in the mobile wallet market, compared with 25% who favored PayPal and just 4% who supported ISIS.
Earlier work by the Internet Advertising Bureau (IAB) also pointed to strong consumer interest in mobile wallets. In November, the IAB reported that the mobile wallet concept was the “most appealing” to smartphone users in the United States and South Korea—provided the scenarios were feasible for consumers.
Both studies reveal broader trends shaping mobile payments and digital wallets. Retailers face pressure to adopt mobile payment strategies as EMV migration timelines, evolving security requirements such as PCI standards, and consumer expectations converge.
“Simply stated, we are at an inflection point as retailers face pressure to implement mobile payment strategies, meet EMV migration deadlines and comply with PCI data security standards,” said Jeff Hale, senior vice president of retail payments at ACI Worldwide.
The two reports together suggest a dynamic market: PayPal holds strong current awareness and usage advantages, but many industry observers expect technology platforms like Google to capitalize on long-term opportunities. Which company ultimately leads may depend on factors such as merchant adoption, security standards, consumer trust and the ability to deliver seamless, widely compatible experiences.
So, who will win the digital wallet war? The answer remains uncertain—short-term success and consumer familiarity favor PayPal, while platform reach, developer ecosystems and strategic partnerships may give Google the edge over time.