Expert Says Consumers Will Go Slow on Mobile Wallets
Odysseas Papadimitriou, CEO of the credit card comparison website CardHub.com and a personal finance consultant. predicted that large credit card issuers will likely make more credit available in 2013 and that consumers will not rush to sign on to any of the latest mobile wallet technologies.
“There was a lot of buzz surrounding mobile wallets in 2012, and while consumers might be excited about this new technology and the prospect of having one less item to carry around, widespread adoption isn’t going to happen in 2013,” he said.
“The $43.5 billion in credit card debt we project U.S. consumers will ultimately incur in 2012 is a clear sign that credit is easier to come by than in 2011,” Papadimitriou commented. “As the economy continues to improve and unemployment falls, this trend will continue. Hopefully we can leave the debt in the past, though. Balance transfer credit cards, credit card calculators, secured cards, and good old fashioned budgeting can all make spending within your means significantly easier.”
He pointed to prepaid cards, particularly reloadable cards such as the Bluebird card from Walmart and American Express, as the biggest new tool consumers could use to help control that spending, and he urged both banks and credit unions to take the competition to their retail banking operations seriously.