Whether your business is ready or not, mobile pay is expanding. According to eMarketer “20.2% of Americans are making payments by scanning, tapping, swiping, or checking in.” If your company doesn’t already accept mobile pay such as Apple Pay, Google Pay, and Samsung Pay, you could be behind the curve. The number of users using contactless pay is expected to increase from 440 million to 760 million in 2019. This increase will represent a massive year for mobile payments.
Mobile Pay Arena
The biggest contenders in the mobile pay arena are Apple Pay and Google Pay. In 2014 when these platforms launched, “only 3% of U.S. retailers accepted these payments; now, more than half do.” Though the fragmented market of mobile pay portals is thought to be slowing down growth, mobile pay is actually growing at an unprecedented rate.
One of the companies contributing to this fragmentation is Starbucks, which has been providing holders of Starbucks cards mobile pay service since 2015 through the use of Starbucks’ mobile app. Mobile pay through Starbucks provides customers with an additional convenience of ordering ahead of time. This added feature kept customers returning time and again, and allow them to feel like royalty while skipping the lengthy morning coffee lines. As this new feature has grown in popularity, Starbucks’ success can be seen from the data as eMarketer shows that, “more than 23 million people pay for their coffee with apps, versus 22 million who use Apple Pay.”
These brand apps utilizing mobile pay also provide a self-generated outlet to further project that brand’s image and advertising. Not only will users be generating daily revenue, but they will also be seeing messages from the brand about upcoming sales, new products, and new features coming through the app. Due to its self-generated nature, a brand can leverage this outlet as a direct, unclouded way of communicating with a consumer to establish higher reach and frequency for the brand.
Ease of Use
Ease of use is a huge factor when it comes to consumers using their mobile wallet. It’s easy to see younger generations, like Gen Z, jumping on board with this payment innovation. But due to the simplicity of mobile payment, generations not often thought of as technologically savvy are joining in as well. Once the initial online shopping set up is complete, users often don’t look back. Business Insider reported “66% of shoppers who use Walmart Pay, end up using the service again within three weeks.” In setting up a mobile pay account, a consumer is committing to repeat purchases from your brand, creating a win-win situation.
Why is it important?
As we begin to see a behavioral shift in the way consumers choose to pay, it is essential for any business to optimize their mobile payment options. Whether with an app, card, or Apple pay integration, enhancing the user experience only increases a company’s positive brand image. The better the experience is, the higher the consumer brand loyalty will be, and the more likely your brand will stay competitive in an ever-changing retail environment.
About The PM Group: The PM Group was founded in 1988. Over the past 30 years, the agency has continued to grow and is currently listed as San Antonio’s Largest Advertising Agency by the San Antonio Business Journal. The PM Group’s client roster spans numerous industries including automotive, CPG, entertainment and sports marketing, legal, business services, non-profit, real estate and fitness. In addition, the agency hosts an annual Charity Gala every February that to date has raised over $3 million for local San Antonio area non-profit organizations in the last 15 years! It is our way of giving back to the community that we so humbly serve.