The mobile wallet is very unlikely to take off this year, according to ICM Research. The company has released findings based on an online survey of 2,015 consumers carried out between 30 November and 2 December.

A key finding is that contactless payment is still very much in its infancy. Whilst consumer awareness is high at 80 per cent, only eight per cent of people actually make contactless transactions. The reasons for this mirror the barriers to mobile wallet take up. Firstly, a lack of retailer support with few terminals and little or no in store promotion. Secondly, widely held consumer security concerns (what happens if I lose my mobile? What happens when my phone runs out of battery?) have not been addressed.

ICM believes that brands also aren’t doing enough to connect with their customers using the mobile tools they are already comfortable with, particularly apps. In the run up to Christmas, it found only one High Street retailer utilising apps specifically designed to help with Christmas shopping. Also, there simply aren’t enough NFC-enabled smartphones which means many people can’t yet make contactless payments by mobile even if they wanted to. A major barrier to take up in 2013 is that smartphone users tend to be tied into long contracts, and people won’t break their contracts just to get an NFC-enabled device.

The research also finds that: a third of consumers would definitely or probably use their mobile as a wallet to make payments, collect vouchers, to use as event tickets and on public transport. This figure rises to 46 per cent when asked just to smartphone owners, with younger people more likely to do so, especially 18-24 year olds at 55 per cent and 25-34 year olds at 49 per cent. The figure increases again when an incentive is offered: 51 per cent would use a mobile wallet if they got a discount for doing so; 51 per cent would use a mobile wallet if their worries about security were addressed; 10 per cent of people have lost either their wallet or purse or in the last 24 months (mainly 18-24 year olds); 55 per cent of us would worry more if we lost our wallet/purse than our mobile; Consumers are ready to accept a range of security measures to gain confidence in the mobile wallet – including a bank/mobile provider guaranteeing any financial losses (56 per cent), to entering a PIN on every transaction (43 per cent) or after a number of transactions (37 per cent), being able to shut the mobile down remotely (40 per cent), setting a daily cap on spending (34 per cent), facial recognition (33 per cent) and voice recognition (24 per cent) on the mobile handset.

Jamie Belnikoff, associate director at ICM Research, says: “Mobile wallet is about more than just paying: it allows consumers to manage their vouchers and discounts, loyalty cards, event tickets and public transport passes all in one place. Whilst people appreciate these advantages, they expect a range of incentives and benefits to get them to pay this way. However even with this encouragement, their genuine security concerns - and as we’ve seen in our recent research into contactless payments, - the lack of terminals in shops and absence of in-store promotion are also preventing broader consumer take-up.”

He adds: “Google Wallet, Apple’s Passbook, Oyster cards and other transport passes, as well as contactless ‘wave and pay’ cards are stepping stones that will encourage early adopters to convert to a mobile wallet. The market needs to combine incentives with added security measures and communicate them widely if it is to build consumer confidence that will help drive the adoption of mobile wallets. We also believe there is a huge opportunity for brands and especially retailers to develop their mobile offer – without the need for investment in terminals, staff training and in-store promotion. We urge both brands and retailers to maximise this opportunity as a great way to engage with consumers in 2013.”

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