Forrester: PayPal Most Trusted Provider for a Digital Wallet

A new survey found that more consumers would trust PayPal than their bank or card issuer to be their digital wallet provider.

More consumers say they would trust a digital wallet from PayPal than from any other provider, according to a recently released survey by Forrester.

The survey of more than 4,000 consumers found that 31% of U.S. mobile phone owners are interested in or have already made mobile payments at the point of sale. Only 11% of those surveyed had actually used a digital wallet, showing that providers need to make their products more accessible and easier to adopt, Denee Carrington, a Forrester analyst and author of a report based on the survey, said.

[For More Mobile Coverage, See: How Retailers Could Dominate the Mobile Payments Market]

When asked who they would trust most as a digital wallet provider, 38% of the respondents picked PayPal, while 35% said they would trust their bank or card issuer the most. Amazon (23%) came in as the third most trusted provider.

The report goes on to recommend that banks move into the digital wallet and compete with their own wallet or a partner-branded wallet.

Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio