How can mobile wallets save consumers about 1% on every purchase compared to card payments while improving the shopping experience?

In most countries this is already in play, but loading your wallet with funds (usually an ACH equivalent, riding the ATM rails), thus making the load very affordable. The wallet is then accepted by various merchants on the basis of a lower pricing (sometimes even flat-fees pricing), by-passing the V/MC networks. Needless to say, the key here is wide merchant adoption.