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Mobile wallet vs. apps - comes down to trust

Nov 16, 2013 Dave King

While the electronics payment sector has grown leaps and bounds over the past few years, there is still much room for improvement as well as numerous opportunities to become a major player among mobile payment options.

A recent article for Bank Systems & Technology highlighted that despite research showing that a majority of consumers do not trust the idea of a mobile wallet, this could actually open up space for retailers to develop and introduce their own payment applications, similar to Starbucks.

Why would mobile applications perform better than wallets? It's all about trust, according to David Birch, a founding director and global ambassador for Consult Hyperion.

"Right now people are confused about the concept of the mobile wallet. But people like their merchants apps," Birch explained to the source. "Merchant apps are going to dominate anyway, I believe… it's hard to see how a third party could come up with a better customer experience than a retailer."

However, this doesn't mean the mobile wallet development has in any way stalled. In fact, in Canada nearly all major financial institutions have some payment technology in development, The Globe and Mail reported.