Promotional rewards and offers may be the best way to a person's (mobile) wallet. New research has found that offering clear rewards and personalized deals can help to speed up mobile wallet adoption among consumers.
Mobile wallets allow people to make payments and complete purchases with smartphones and other technologies.
Despite the potential of mobile wallets, the technology has not caught on yet. Just 14 percent of consumers interested in mobile transactions say they have completed a mobile wallet purchase in the past three months.
That comes as more than three-quarters of respondents say they are interested in near field communication, which uses radio frequencies to allow exchanges of information on smartphones and other devices. The disconnect between interest and implementation may rely on the ability of retailers to target consumers with special offers and promotions.
"To put it simply, wallets must deliver more than payments. M-payments struggle to measurably trump existing payment methods in terms of speed, convenience, security and ubiquity," said Jordan McKee analyst at the Yankee Group, which conducted the research. "As a result, they must address the broader value chain to gain traction. Integration of offers and loyalty isn't a bad place to start."
Loyalty programs may be the vehicle to help improve the adoption of mobile wallets and payments, but companies hoping for real success must also tailor their offerings to meet their customer's needs.
"While consumers and merchants remain intrigued by mobile wallets, no single solution has emerged victorious," said Jason Armitage, principal analyst at the Yankee Group and co-author of the report. "As a result, the market is characterized by a multitude of mobile wallet vendors vying for dominance, with a dizzying number of available offerings. As the market matures, solutions that deliver actual value for consumers and merchants will proliferate and clear winners and losers will become more apparent."