Security & Fraud

Digital Wallets Dominated Social Media Conversations In 2016

Mastercard money

Digital wallets are gaining interest from smartphone and laptop users around the world, according to Mastercard’s 2017 edition of its Digital Payments Study.

In a press release, Mastercard said digital wallets dominated conversations about new ways to pay for things, with it topping 75 percent of the conversations tracked by Mastercard. At the same time digital wallets are sparking a lot of payment conversations, the payment method is gaining interest from consumers who are looking for ways to make shopping faster, easier and more secure. Mastercard’s study looks at more than 3.5 million conversations during the past year on social media websites including Twitter, Facebook, Instagram and Weibo.

“Technology is making the promise and the potential of a less-cash life a reality for more people every day,” said Marcy Cohen, vice president of digital communications at Mastercard, in a news release highlighting the results. “This year’s study notes a change in the level of interest for new ways to shop and pay that only a few years ago would have seemed farfetched.”

According to the study, digital wallets in-store, online and in-app generated more than 2 million mentions during 2016, with 84 percent of those mentions happening on Twitter. In addition to making payments, consumers like digital wallets because they can store loyalty cards and support public transportation systems. Coming in second in terms of technology-focused conversation about payment methods were artificial intelligence and smart home assistants, reported Mastercard. Discussions about payment methods peaked in the fourth quarter with people talking about how they were planning on shopping with their devices. While digital wallets were viewed positively in the conversations, the discussions centered on security as well. Mastercard said respondents in the study continually said the success of new payment method is reliant on security and protections that go beyond what is available today. Close to half, 43 percent, showed interest in biometrics and other authentication technology to improve security and reduce fraud.



The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.

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