As many as 25 million wireless subscribers in North America could be using their cell phones as mobile wallets by 2011, reports In-Stat.

Photo: 25 Million U.S. Cell Phones to be Mobile Wallets in 2011

Unlike M-commerce, the mobile transaction concept touted in the 1990s that never took hold, the mobile wallet is a much more versatile application that includes elements of mobile transactions, as well as other items one may find in a wallet, such as membership cards, loyalty cards, and other forms of identification.

Recent research by In-Stat found the following:

- According to an In-Stat consumer survey, attitudes of U.S. users towards mobile wallets are at best, lukewarm, with roughly one-third of respondents interested, one-third indifferent, and one-third uninterested.

- The most frequently mentioned barrier to the mobile wallet is added fees for its use (72% of respondents), followed by security concerns about loss of the phone and privacy.

- Survey data found that mobile wallet was most appealing to technology innovators and early adopters as well as subscribers who already rely heavily on their wireless phones.

The report was developed through the results of a 1,200-response online survey and interviews with key players in the sector including credit card company JCB, semiconductor vendor Philips, credit card terminal company ViVOtech, and traditional wireless companies such as Nokia and Cingular Wireless.