Although mobile payment adoption is on the rise, there are a few key factors that will encourage even greater adoption. Three points in particular need to be addressed for mobile payments to really take off. As a recent Accenture study points out, these include giving consumers a reason to pay, rewarding them for doing so, and keeping things familiar.
Give them a reason to pay
Consumers are more likely to convert to mobile payments once they’ve successfully made their first transaction. That said, it’s difficult to incentivize that first experience. Mobile payment offerings must deliver value…value traditional payment methods do not provide.
Starbucks is a good example of a successful implementation of this incentive model. Here, consumers appear to be enticed by speed and a smooth checkout experience.
Our SHAZAM BOLT$ is good example of a mobile app that truly adds value for consumers. Although not a payments app today, SHAZAM BOLT$ allows debit cardholders to use a smartphone or tablet to check balances, set parameters for email alerts, and eventually, initiate person-to-person transfers. The app adds additional value as an extension of SHAZAM fraud prevention services. It alerts cardholders to potentially fraudulent activity on their accounts, based on suspicious behaviors.
A simple set of rewards reserved exclusively for those who pay via mobile can significantly increase the rate of adoption. According to Accenture’s study, 60 percent of consumers who already make mobile payments indicated they would probably do so more often if they received instant coupons as a result. Of those, 36 percent said they’d give over personal information to receive instant coupons. Additionally, 46 percent stated they would spend more if they were given the offer of short-term location-based coupons.
Make them comfortable
Keeping things familiar will automatically make mobile payments feel safer. While mobile payments are as secure (if not more so) than other payment methods, 45 percent of survey respondents who don’t make mobile payments today said they were concerned about privacy.
While it’s essential to educate consumers about the safety of mobile payments, it’s also important the process of transacting isn’t a massive departure from the norm. Of course, the experience must also feel different enough to make consumers choose something new over something known.
Financial institutions currently configuring their mobile payments strategies need to consider how their proposed product will offer these three value points for the consumer.