The Electronic Payment Service Providers’ Association (EFISZ) arranged for a new, country-wide representative survey to be conducted: this time, the Association conducted its two-phase survey on “Mobile wallet solutions through the eyes of the users - representative survey on user habits and attitudes concerning mobile wallet applications”.

For the qualitative survey, an online focus group survey was conducted, controlled by a qualified moderator, between 11 and 12 March 2024, in which 4 groups participated.

During the focus group survey, users of the following electronic payment solutions, including mobile wallet applications, were interviewed to gauge the opinion of the target group:

• the 18–66 age group, 2 groups in the 18–25 age group, and 2 groups examined the 25–66 age group,
• mobile wallet users, those over the age of 25 have tried more than one such application,
• members of the groups over the age of 25 use mobile wallet applications at least on 1 occasion per week, this was not a requirement for the 18–25 age group.

The groups were heterogenous in terms of gender and place of residence, the groups included members from small and large settlements alike, from all three regions of the country.

Methods of payment

In the target group using a mobile wallet, the 18–25 age group and those over the age of 25 predominantly support electronic payment solutions, though there are some amongst them who prefer cash where it is possible.

The primary appeal of cash is that it is tangible and that it allows spending to be monitored.

The members of the target group prefer electronic forms of payment because of their convenience, security and swiftness.

Both age groups are aware of security concerns regarding cash and electronic payment alike, and opinions are divided over which method of payment is safer.

Concerning electronic payment, online shopping is regarded as the least safe, with participants being the most afraid of hackers’ attacks, while no serious concerns were voiced in connection with card payments.

There were participants in both groups who have experienced that electronic payment solutions were not accepted in small stores when a service was used, and more than one group member has experienced a situation where cash payment was not available. Compared to experiences abroad, on-site electronic payment options are seen to be more accessible in Hungary.

• Cash is still used: several participants in both age groups examined still frequently use cash.
• The advantage of electronic payment is convenience: this method of payment is used predominantly to save time and space in both age groups examined.
• The security of online payment is doubtful: both age groups are afraid of hacking attacks mostly in the case of online payment, they believe that the solution is caution, the use of more cards, voice-based information, poster-based information and education on the possibilities of protection.

Fintech, mobile wallet

The participants examined predominantly connect the concept of Fintech to digital banks whose profile is based solely on electronic services, such as Revolut or Wise, it is not obvious for the members of the groups that the possibilities available in the mobile wallet applications of conventional banks also fall into this category.

Both age groups examined see mobile wallet payments as more convenient, safer and quicker than bank card payments.

The majority of the participants believe that face recognition and fingerprint scanner security systems in phones offer greater security than the PIN codes of bank cards.

While the majority of the 18–25 age group are familiarizing themselves with the possibilities offered by mobile wallet applications and use them predominantly for payment, those over the age of 25 are aware of and use more of the available features. In addition to the various forms of payment, functions relating to tickets and coupons are popular in both age groups. The possibility of dividing bills came as news for many. This is used, and seen useful, by some, while some specifically remarked that this was unnecessary.

• The word ‘fintech’ is still less known: group members associate Fintech services with banks only specializing on this.
• Paying with a mobile wallet is more convenient and safer than card payments: group members believe that the advantage of mobile wallet payments is that they have constant access to their phone which has a fingerprint scanner or a face recognition security system.
• Older people are more experienced: 18–25 year olds are more experienced in using the features of a mobile wallet, they have tried and use more of them regularly.

The 18–25 age group is more open to uploading their personal data in a mobile wallet application than those over the age of 25, security concerns are less pronounced when trying out certain features, they would prefer convenience and being able to store things in one place.

In both age groups examined, it has been suggested that using more cards with smaller deposits would increase security, and a virtual card, one which expires after the first use, is considered a good idea.

The most popular mobile wallet applications are Apple Pay and Google Wallet, which have been positively commented by their users. Of proprietary applications of banks, many use Simple Pay, it seems that young people mainly do so because it is related to their bank and they have not yet tried anything else, and it has been suggested in both groups that it is possible to purchase motorway vignettes and bus tickets through this application and arrange parking, too. The number of PayPal users is also high, especially when it comes to online orders, supported by certain sites.

• Younger people are more open to uploading personal data: The 18–25 age group has fewer security concerns about data stored in a mobile wallet application.
• Apple Pay and Google Wallet are the most popular: they are most satisfied with Apple Pay and Google Wallet in terms of manageability and features, these are what most people use, in many cases in addition to their bank’s proprietary application.
• OTP Simple has the lead in transportation: of the mobile wallet applications offered by banks, OTP Simple is the most popular, predominantly due to the possibility of arranging parking, buying bus tickets and motorway vignettes.

Concerning the quantitative survey, a representative sampling of Internet-user population over the age of 18 in Hungary took place using the so-called CAWI (computer assisted web interview) method between 15 April 2024 and 2 May 2024, during which 1,000 persons were interviewed.

Of the total sample, 52% (522 people) are women, 48% (478 people) are men, 38% (380 people) are between the ages of 18–39, 42% (419 people) are between the ages of 40–59, 20% (202 people) are 60 years or older.

According to the type of settlement, 18% (176 people) of the total sample declared themselves to be from Budapest, 23% (225 people) live in cities with a county rank, 32% (319 people) live in other towns, and the proportion of people living in a village is 28% (280 people).

35% (355 people) of the total sample have a primary education, 38% (381 people) have a secondary education, and 26% (264 people) have a higher education degree.

Nearly two-thirds (63 percent) of the participants in the survey prefer electronic payment methods over cash.

64% of respondents are familiar with the concept of a mobile wallet. The best-known applications are PayPal (53 percent), Simple (44 percent), and Google Pay (40 percent), and these are the ones most frequently used by the members of the entire sample (15–13–8 percent).

53% of mobile wallet users mostly pay via mobile wallet applications. Device recognition issues occurred for 29 percent during payment, and for 17 percent on more than one occasion.

39% of the participants in the survey believe that mobile wallet applications can completely replace a physical bank card, while 57% of regular users of mobile wallet applications think the same.

Using a mobile wallet is cost-effective

Almost two-thirds (65 percent) of those who have already tried a mobile wallet application and 70 percent of their regular users find it cost-effective to use such applications.

With a 42 percent response denial rate of all respondents, the relative majority (46 percent) believe that using mobile wallet applications reduces costs.

Using a mobile wallet is safe

72% of those who have tried a mobile wallet and 79% of regular users say that these applications are safe to use. Even in the entire sample, the relative majority (47%) believes that using a mobile wallet application is safe, while only 22% have doubts concerning that. The majority of those who have tried, or regularly use, a mobile wallet application (71–71%) believe that it is safe to pay through such an application.

57% of regular users say that mobile wallet applications have adequate data protection.

Using a mobile wallet is convenient

The vast majority (84–86%) of those who have tried, or regularly use, mobile wallets find them convenient to use. 66 percent of all respondents believe that using a mobile wallet application is convenient, while only 9 percent of them believe that they are not convenient.

EFISZ