Dive Brief:
- Three out of five U.S. smartphone users have a mobile wallet, according to a survey conducted by payment solutions provider Blackhawk Network. But, as of October 2018, only half of retailers accepted mobile payments.
- The survey found that 60% of shoppers said they’d like to pay for products in-store through their smartphone by using loyalty points they’ve earned. Almost half would join a loyalty program if they could use points to purchase products.
- Seven out of 10 of customers surveyed said they’d like the ability to add cash to an app or digital wallet while in-store. If they were able to, 68% of them they would shop at the store more often and 57% said they would spend more money, per the report.
Dive Insight:
Improving digital payment capabilities is important for retailers as it creates a more seamless checkout process and can boost loyalty.
According to Blackhawk, mobile wallet adoption is on the rise and can create about $190 billion in transactional value in the U.S. by 2021. Juniper Research estimates 2.1 billion customers around the world use mobile wallets for payments or money transfers.
U.S. retailers have been slower to adopt the technology than companies in other parts of the world, mainly due to the lack of updated hardware, according to Blackhawk. Historically among retailers, grocers are often the last to pick up on retail technology trends.
Since Walmart’s initial launch of mobile payment in 2015, a handful of grocers have added mobile payment options to their apps. Last year, Publix and Kroger debuted their mobile payment apps, with Kroger combining its tool with customer loyalty cards and promotions. Hy-Vee also began accepting Apple Pay at its stores.
As more retailers add mobile payment options to their apps, they should consider adoption rates. Shoppers may be more willing to use a digital wallet across stores rather than downloading dedicated store payment apps. If a grocer does want to add its own payment platform, shoppers may be more willing to adopt it if loyalty points are attached to the app, like in Kroger’s case, and if those accrued points can be used to pay for items.
via https://ift.tt/2Jn9P8X by Krishna Thakker, Khareem Sudlow
