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What will mobile payments platforms do to boost enrollment?

March 1, 2016

Over the last few years, many experts both inside and outside of the mobile payments industry have been saying that there might need to be a little bit of an extra push to get consumers to start using these platforms on a regular basis, and en masse.

Over the last few years, many experts both inside and outside of the mobile payments industry have been saying that there might need to be a little bit of an extra push to get consumers to start using these platforms on a regular basis, and en masse. So the question becomes what the companies that have worked hard and invested heavily into building these platforms will choose to do as a means of engendering more widespread use.

Some data suggests that the mobile payments transactions completed in the U.S. over the course of 2016 will probably carry a dollar value of more than $12 billion, which is a significant step forward for the industry as a whole, according to a report from Mobile Payments Today. However, some feel these improvements could be even more significant if companies were a bit more proactive in getting together some incentives that could further drive adoption, but the path forward in this regard is often tricky.

What will consumers need to start using mobile payments more often?What will consumers need to start using mobile payments more often?

What’s the issue?
It’s not always easy for mobile payments platforms to figure out the best way to incentivize use, and for this reason any path they choose might not be as successful as one they did not, the report said. However, there are some general ideas that could go a long way, such as creating something of an intermediate step between initial use and full-time use. One of the big issues here is that consumers aren’t necessarily opposed to using mobile payments, but they are wary about these platforms, especially where security is concerned. Giving them something between the mobile financial services they deal with regularly (such as banking) and the new payment options could therefore be quite helpful.

In addition, it might be wise for the developers of mobile platforms to figure out ways to highlight the security measures their services carry in a way that’s easily demonstrated, and simple for people to understand, the report said. In this way, they may be able to assuage the concerns people still routinely express when it comes to handling their traditional credit or debit card accounts through these new avenues. The irony, of course, is that mobile payments are far more secure than traditional credit card technology, and people may simply need time to come around to that fact given that the old way has been used for decades.

What about incentives?
Finally, the idea of tying mobile payment platforms to purchase incentives may also prove crucial, the report said. The ability to pay for an item at a big-box retailer, for example, and have that purchase automatically tie into their loyalty rewards accounts with the store could prove effective in getting people on board. That can also be beneficial to retailers and mobile providers, because it may provide more immediate insight into purchasing habits.

The more businesses can do to adopt mobile payment platforms as well, the more likely their customers may be to try these options. That, in turn, could further drive adoption in the near future, and make these purchases more ubiquitous.

 
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