Company after company has shown just how successful retailer wallets are – even over tech-based apps. According to experts, retailer mobile wallets are benefitting from a built-in customer connection. Consumers enjoy a high degree of personalization that includes not just payment preferences, but the ability to earn loyalty points, receive special offers and redeem rewards. The sheer volume alone is testament to this.
Consider Starbucks Corp. wallet. First debuted in 2010, it has enjoyed unparalleled success. Krista Tedder, director of payments at Javelin Strategy & Research, a Pleasanton, Calif.-based firm, has referred to the company’s wallet success as “the gold standard”. “The gold standard of how to get customers to use mobile is Starbucks. It’s very easy.”
Starbucks creatively included games, or challenges, within its app to encourage repeat behaviour. Star Streak, for example, encourages users to collect up to 100 bonus stars by making a purchase on six consecutive days by the game’s conclusion. This approach is effective because it requires customers to pay with their Starbucks app.
Even with the success Starbucks Corp. wallet, Walmart Inc.’s Walmart Pay, Apple Pay, Google Pay and Samsung Pay, not all retailers are finding their efforts lucrative or successful. Why? While the efforts to make smart-phone-based wallet acceptance ubiquitous have had success, retailers would have more success if merchants actually activated the contactless technology in the terminals.
When the payments industry converted to EMV credit and debit cards, merchants installed new point-of-sale terminals – most of which have contactless payments capability built it. However, as of now, many of the retailer wallets only work with bar codes because they do not require additional cashier training(which they have taken advantage of when developing their apps).
“These mobile-payment apps eliminated the separate step of first scanning a retailer loyalty card before dipping a payment card and providing your ZIP code or PIN,” says Richard Crone, founder of Crone Consulting LLC.
“Now, in a single step the consumer opens the fuel retailer’s app with biometric authentication such as Face ID or Touch ID, and it automatically activates the pump, applies the loyalty-program discount, and the consumer is given loyalty credit for the purchase.”
According to experts in the industry this is what makes retailer wallets stand out. It is also what will give retailers a fighting chance against Amazon Go. If you need more information on payment processing services or rms retail merchant services, consider the information Best Payment Providers has to offer.
Author bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry and rms retail merchant serviceshas helped thousands of business owners save money and time.