Analyst Says Loyalty Schemes Will Drive Mobile Wallet Adoption
Businesses are integrating loyalty programs into their mobile wallet offerings as a way to bolster consumer adoption for in-store purchases, says Euromonitor analyst Michelle Evans. “The two biggest reasons why mobile wallets are struggling to gain adoption are consumer concerns about security and privacy,” she says. Other obstacles include the lack of infrastructure for mobile payments and the convenience of existing payments methods, Evans notes. “Ultimately, mobile payments must be as cheap, safe, and easy to use as traditional payment methods to even be considered a viable option,” she says. Added value in these loyalty programs could be in the form of monetary savings, improved security, convenience, or increased loyalty offerings. Evans indicates loyalty has to be more than just points, miles, or free hotel nights, and retailers need to tap into data analytics to provide mobile wallet users with an individual shopping experience. “Loyalty-driven mobile payment initiatives will be about one-to-one customer engagement,” Evans says. “Retailers need to know when mobile shoppers are in their stores, so they can provide personalized offers based on knowing what brands consumers like.”
From “Loyalty Schemes Will Drive Mobile Wallet Adoption”
Mobile Payments Today (03/28/14) Arnfield, Robin