A digital wallet is a cloud-based payment system which can be used with a smartphone, laptop, desktop computer or tablet.
Its main drawcard is convenience, as it simplifies the process of shopping online and in-store.
The user’s credit, prepaid or debit card information is loaded and stored in one secure location, taking away the hassle of filling in payment details every time a user buys something.
Country manager for MasterCard New Zealand, Peter Chisnall, says Kiwis are looking for easy and safe ways to shop online, as the biggest concern for those surveyed was the security of their banking and personal details.
The digital wallets also allow stores to add loyalty and rewards schemes to the cards, making checking out at an online shop that’s visited regularly a far smoother process.
“No one wants to carry around multiple loyalty cards, nor is it possible to remember which one is used where,” Chisnall says.
“So being able to store this information electronically, to be quickly selected at check-out with the appropriate shipping address, is a significant transformation of the status quo.”
MasterCard’s ‘MasterPass’ digital wallet launched in April last year at Westpac branches and various payment technology providers, including Fontis, Flo2Cash, IP Payments and Paystation.
Local retailers that let customers shop with MasterPass include NZSale, Living Social, Rebel Sport, BuyInvite and Roxy. View the full list here.
Chisnall says he’s seen an uptake in people adopting digital wallets in the short time since MasterPass was released, but says the public have taken time to catch on.
“As is expected with new technology, uptake is gradual before people discover the benefits,” he says.
The survey found 43 percent of people need more information before they’d use a digital wallet, showing there’s still some apprehension about modern payment systems.