New Report Answers the Question: What Makes Some Retailers’ Mobile Wallets So Successful?
1-27-2017
Retailers like Starbucks and Dunkin’ Donuts are seeing enormous success with their mobile wallets and corresponding loyalty programs. These merchant wallets are leading the overall mobile wallets industry, which is attributed to their ability to push out innovative features like rewards programs, coupons, mobile order-ahead, and custom marketing.
A new report from BI Intelligence assesses what makes these mobile wallets so successful and which retailers can most effectively leverage the technology to push sales, traffic, and average ticket size.
Key highlights include:
- Retailers with large addressable user bases who are loyal, repeat visitors will see their mobile wallets continue to be popular with consumers, especially as there continues to be slow merchant adoption of near-field communication (NFC) technology, as well as weak offerings by universal mobile wallets like Apple Pay and Samsung Pay.
- Loyalty programs will be a significant driver in retailer mobile wallet adoption. Companies like Starbucks and Dunkin’ Donuts have been able to leverage their loyalty programs to acquire mobile wallet users, which, in turn, has driven store traffic and conversion rates.
- By leveraging these programs, sales are expected to grow at a five-year compound annual growth rate of 68%.
- However, adoption will begin to decelerate as a result of increased competition by 2020. As universal mobile wallet players begin to add effective loyalty programs and coupons to their offerings, adoption for retailer-based mobile wallets is likely to slow down because these offerings are their main marketing points.
You can find more information about the report here.
About ETA
The Electronic Transactions Association (ETA) is the world’s leading advocacy and trade association for the payments industry. Our members span the breadth of significant payments and fintech companies, from the largest incumbent players to the emerging disruptors in the U.S. and in more than a dozen countries around the world. ETA members make commerce possible by processing approximately $56.75 trillion annually in purchases and P2P payments worldwide and deploying payments innovation to merchants and consumers.
ETAs membership spans the breadth of the payments industry to include independent sales organizations (ISOs), payments networks, financial institutions, transaction processors, mobile payments products and services, payments technologies, and software providers (ISV) and hardware suppliers. For more information, visit electran.org.
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