Use of mobile pay among U.S. consumers is growing, and the market channel could usher in the next wave on payment options for the phone generation.
According to a report from Parks Associates, 25% of smartphone owners in the U.S. use mobile platforms at least once a month. Apple Pay and Android Pay are accepted by nearly 3 million retailers, but the majority of mobile pay users are loyal customers looking for additional benefits or convenience when using a mobile payment service.
25% of smartphone owners us mobile platforms at least once a month.
Retailers have been slow to adopt payment apps because of implementation hurdles like integration with existing point-of-sale systems or costs related to third party terminals.
mobile payment history
Consumers use payment apps mostly for purchasing food and beverages, tickets to shows, or clothing. But the digital wallet is on a path similar to online stores. New apps present unique opportunities to appeal to a loyal customer base and reward those most dedicated to their brands.
mobile payment basics
For merchants with a loyal customer base, mobile payment functionality is a helpful addition to a merchant-specific mobile wallet that allows customers to earn loyalty rewards, save gift cards, and redeem coupons. These merchants should use payment functionality from within the wallet to alert customers about coupons and offers as they make a purchase and to link transactions to specific customers in order to effectively validate marketing campaigns, evaluate merchandise strategies, segment shoppers, and improve ad targeting.
But as the credit card real and virtual landscapes continues to evolve, we’ll all be watching where mobile pay options shake out. At the end of the day, banks that offer points and rewards and companies like Target offering 5% cash back might be just sweet enough to continue winning consumers.
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Position POS is a Madison-based iPad-centric POS system solution provider. Providing in-person specialty evaluation and training for your business is our biggest asset. We help you move from old cash and card processing systems to a turnkey iPad technology. For more information visit us at PositionPOS.com.