NEW YORK – As U.S. consumers use more smartphones and mobile devices, it would seem natural for them to ditch their physical wallets and make digital payments whenever and wherever they could. However, a new survey from Gallup shows that this is not the case by any stretch.

Though Apple is trying to change consumers’ minds – and may have the best shot at doing so, thanks to overwhelming love for the company’s products – Gallup analysis shows that enthusiasm for digital wallets is still low. Only 13% of U.S. adults with a smartphone have a digital wallet on their device, and 76% of those who have a digital wallet say they have used it “never” or “almost never” in the 30 days prior.

Of U.S. consumers using a digital wallet, men and Millennials use it more than the rest of U.S. adults: 11% of men and 11% of Millennials use it every time or almost every time if they can to make a purchase. Among consumers who have digital wallets, 38% don't see any benefits of using the technology. What's more, nine out of 10 consumers who don't have a digital wallet say they are very unlikely or unlikely to start using one in the next 12 months (91%). This suggests that providers either lack a strong value proposition or aren't communicating it well to prospective customers.

According to the report, consumers don't seem to be eager to start using digital wallets in the near future, with further analysis suggesting several reasons for their reluctance. More than half of non-users cite security as a primary reason they're unlikely to use a digital wallet in the next 12 months (55%). Others don't know enough about the technology (21%) or see any benefits of using a digital wallet over just using credit cards (14%), while a few don't think they are accepted at enough places to make the technology useful or worth it (5%).

However, despite consumers' relatively low enthusiasm for digital wallets, the competition in the market is becoming more intense. Apple has already shot to the No. 2 position in market share with the launch of Apple Pay, even though Google and PayPal have been in the digital wallet space longer. Whether digital wallet companies are incumbents or startups – and regardless of whether they're technology firms, retailers, banks or credit card companies – every provider is looking for opportunities to win share from consumers and merchants, says Gallup.

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