For nearly a decade, tech experts have predicted that the rate at which consumers begin adopting mobile wallets as a preferred payment source would tick up in the near future. While there has certainly been some ground gained in this regard over the past few years, industry insiders say adoption isn’t really at the point they’ve expected yet. However, many remain optimistic that this could change in the near future.
Goldman Sachs recently released analysis to clients which noted that to this point, mobile adoption really hasn’t reached the level many might have expected when major platforms started rolling out a few years ago, according to Business Insider. Apple, Samsung and Google have all released – and put some major clout behind – their mobile wallet platforms, but use still lags somewhat; only a little more than 1 in 4 iPhone owners have used Apple Pay at least once, and just 8 percent have become regular users. “Despite much publicity upon launch, Apple Pay, Samsung Pay, and Android Pay have struggled to gain traction,” the analysis said. “Apple Pay is dominant among the digital wallets, with 90 percent of all mobile phone contactless U.S. transactions on Apple Pay.”
Merchants have a role to play in encouraging consumers to adopt the more secure mobile payment platforms that are still gaining traction nationwide. To start, offering the option for customers to pay with their mobile wallets is a strong step in the right direction, especially for securing loyal customers. Once merchants have chosen a mobile payment acceptance platform that works best for them, it is crucial for them to keep customers knowledgeable, deliver better experiences, and offer incentives. Giving consumers more knowledge, experiences, and incentives will not only increase sales for a business, it will also strengthen their customer loyalty.
1. Provide Customers With Knowledge
There are various issues that might hold back more widespread mobile wallet adoption. Perhaps one of the biggest among these is knowledge and familiarity. At this point, most people just do not have much hands-on experience with mobile payments. Despite the lack of mobile adoption, consumers today are typically more informed, more connected, and more demanding. It is important for merchants to tap into that and give consumers what they want – convenience. If consumers know about the mobile payment options that a business offers, they will realize how much more convenient their shopping experience can be.
For those customers that are already aware of mobile payments and have a desire to use them, merchants need to make it known that their store accepts those types of payments. They can do this by training their staff to let customers know or simply providing signage near the payment terminal that informs customers that the store is mobile payment operational.
2. Create Better Experiences
There are a lot of ways that merchants can improve the overall experience for consumers through mobile payments and wallets. For one, some mobile payment features include ordering ahead, which allows customers to place their food orders ahead of time and then skip lines to pick it up. Another way to improve the customer experience is through pay-at-the-table. Customers no longer need to wait for their server to bring them the check, which helps get customers out the door faster.
Another way that mobile payments can create better experiences is through services and bills. If a customer has the option to pay for a service or bill with their mobile wallet that can greatly increase a customers’ overall experience with that business. Mobile payments can be utilized to help solve pain points for consumers, which will in turn drive customer adoption and help increase sales and loyalty.
3. Offer Rewards, Perks, Or An Incentive Program
Digital wallets are ripe with clear potential for merchants to drive new customers and increase loyalty. Once a merchant has their mobile payment system in place, they can create incentives to boost repeat visitation and usage. Merchants can push targeted offers and coupons directly into customers’ digital wallets, which is a great way to start initial usage.
To create repeat usage, merchants can integrate a loyalty program, which creates value for customers over time. The best example of this is Starbucks’ mobile app. Their app tracks rewards, delivers rewards, and offers the ability to pay through the app. Another benefit of incentive and loyalty programs is the data it offers. You are able to provide customers with a more unique experience by targeting their purchasing habits.
The more merchants can do on their end to encourage mobile wallet and EMV use – often simply by offering them as payment options at checkout – the better off the entire payments ecosystem will be going forward.Back To Blog