While convincing consumers to make use of a mobile wallet remains an issue for many providers, shoppers that do convert to mobile payments make extensive use of the technology, Nielsen’s Q2 2014 Mobile Wallet Report has found.

SURVEY: Which payment methods are mobile payers using? Source: Nielsen

Some 40% of the US mobile wallet users surveyed by Nielsen say they use mobile methods as their primary mode of payment — and rewards are the key to winning over new users.

“Consumers agreed (69%) that they would convert to mobile payment methods if merchants were to offer discounts specific to purchases made via mobile wallet,” Nielsen found.

“Also driving their decision would be if the reward programs that they are currently enrolled in would honor mobile transactions, and if rewards programs and mobile wallet could be integrated to redeem points immediately (69%).”

Men and women are almost equally likely to use a mobile wallet and users span all income levels, the survey also found. Those making less than US$50,000 a year (32%) and those earning more than $100,000 (29%) are the most likely to use a mobile wallet. The majority are aged 18 to 34 (55%), while 35% are aged 35 to 54.

“Bar codes and quick response (QR) codes, which consumers simply display on their device so cashiers can scan them, are the most popular mobile payment methods among smartphone payers (45%),” Nielsen adds.

“Some 37% of smartphone payers tap their device on a payment reader using near field communication, such as Google Wallet or Isis, [while] 29% of smartphone payers scan the barcode or QR code using the device’s camera.”

The survey also looked at peer-to-peer (P2P) payments and found that 71% of P2P app users say it reduces tension around splitting a bill, while 73% said they like the convenience of not having to split checks or find an ATM. Almost half (49%) have used P2P payments while dining.