A recent study conducted by The University of Illinois found that retail purchases increased by more than 23 percent when consumers opted for mobile wallets such as Apple Pay or Google Pay. What that means is that consumers are buying low-cost items more frequently when they opt for mobile wallets. It’s not surprising since prior research has shown that people spend more when using credit cards as opposed to cash. In fact, contactless payments are predicted to drive global card spend to $45 trillion by 2023.
Mobile wallet adoption is worth considering for your business because they are making spending more convenient for consumers and present an opportunity to increase revenue. In fact, accepting mobile wallets provides several other benefits for businesses:
Better customer experience
Customers expect to be able to pay how they want. Now that mobile wallets are becoming more widespread and discussed among consumers in the US, it’s critical that businesses are accommodating. This will not only delight customers who prefer to use their mobile wallet, but it sends out a strong message that your business values staying up-to-date with the latest payment technology and data security. Even if there are customers who have not yet begun utilizing mobile payments, it creates an awareness of that technology and builds up your reputation as a forward-thinking business.
Speed up transactions
A big complaint from consumers about EMV transactions is that they take a long time. While this is mostly a perception, the faster option offered by mobile payments is an attractive alternative. Mobile wallets provide a fast and simple payment experience. For businesses, keeping lines moving is a big part of improving the checkout experience, and it leaves customers with a positive interaction that they will remember the next time they are deciding where to give their business.
Security of transactions
In the age of data breaches and stolen card information, security should be top of mind for any business in any vertical. Mobile wallets such as Apple Pay and Google Pay require a passcode, fingerprint or facial recognition before a transaction can occur, while a physical credit card does not. Although many people have the misconception that mobile wallets are not secure, their two-step authentication and encryption make them a great option for businesses to ensure their customers’ data is safe. In addition, the standard for mobile payments is tokenization, which replaces the card number with a unique string of digital numbers during the transaction so that the account information is secure.
Value-added service programs
With a strong mobile wallet strategy, businesses can integrate additional features such as loyalty, special offers, push notifications, coupons, etc. Customers want convenience and the best value for their money, both of which can be enhanced by mobile wallets features. They’re also able to streamline the process to sign up for loyalty and rewards programs, making it possible for customers to sign up with just a tap after paying with their mobile wallet. Through this, businesses are able to drive higher baskets and loyalty, boosting revenue and providing a better customer experience.
There are so many benefits of your business adopting a mobile wallet strategy. If customers spending more often, providing a better customer experience, faster transactions, more secure transactions and the opportunity for value-added services are not convincing enough, check this out: from 2017 to 2018, social media mentions of mobile wallets specifically more than doubled. Mobile wallet acceptance will not only provide immense benefits for your business, but consumers are going to start expecting it in the near future.
Interested in learning more? Drop us a line, we’d love to help your business take advantage of all mobile wallets have to offer.
Drew Goebel is the Key Account Manager at Ingenico Group, North America