66% of shoppers would use digital wallets

Consumers' comfort with mobile payments is growing, but while shoppers are open to using digital wallets, more education is needed to get them to pay with a mobile device.

Digital wallet usage has increased by 20 percent from 35 percent at the start of 2014 to 55 percent at year-end 2015, according to The Let's Get Digital study from Citi Retail Services.

Roughly 66 percent of survey respondents said they could be convinced to adopt a digital wallet but need to know more about the benefits. Of those who have not yet paid using digital currency, 44 percent said they didn't know much about the digital tools.

Security concerns are a factor for 45 percent of survey respondents, down from 52 percent in 2014; 47 percent said it was more convenient and easier to use cash or credit cards.

"Digital wallets are quickly becoming mainstream," says Leslie McNamara, managing director of partner management, Citi Retail Services. "Tech-savvy shoppers are increasingly demanding seamless, omnichannel retail experiences and looking for solutions that deliver this. There's no question 2016 will be a pivotal year as digital wallets gain more widespread acceptance."

Mobile or digital payment solutions are multiplying from third party providers including American Express, MasterCard, Apple Pay and Android Pay. Retailers are also busy launching their own branded digital wallets. Walmart announced Walmart Pay last month and Target is reportedly exploring its own payment platform.

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