Commentary

Consumers Trust Banks Over Apple For Mobile Payments

Apple Pay has created a lot of buzz, but most consumers still have concerns about the security of Apple’s mobile wallet app, and would be more likely to trust a mobile wallet app from their bank, according to a new survey of 4,200 U.S. households conducted by Phoenix Marketing International.

Over two-thirds of the respondents said they would rather use a mobile app from a bank, versus less than a third who said they would opt for Apple Pay, Phoenix found. In line with these figures, 65% said their main concern was the security of their private financial information. At the same time 44% of respondents said they had at least somewhat positive feelings regarding Apple Pay, so it appears to be gaining traction.

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Among the respondents who said they would use Apple Pay, three-quarters said they would like to link at least two credit cards to the mobile wallet, and most said they would also like to use it with debit cards and prepaid accounts. Convenience and security outweigh savings, with just 26% saying they would like to get personalized offers while shopping via the mobile wallet service.

While the survey presented respondents with an “either-or” choice between mobile wallets from Apple Pay and competing services from banks, presumably Apple Pay can benefit from its partnerships with trusted banks, as these alliances confer an implicit endorsement by them of its security measures.

Apple is making significant progress on this front. Bank of America, Citi, Wells Fargo and Capital One are already supporting Apple Pay integration. As noted earlier this month, U.S. Bank, the fifth-largest commercial bank in the country, is making Apple Pay available for customers using U.S. Bank Visa credit cards or debit cards. PNC Bank is also integrating Apple Pay into its suite of customer services.

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