What is the Optimum Mobile Payment Mix?

 

Like many others, I am eschewing my physical wallet and using my phone as a ‘hub’ to pay for everything I need in my busy 21‘st century life. Let me outline my typical day. Wake up, go to the gym and buy a banana on my way out with Apple Pay; go to the petrol station and fill up the car by paying with my Shell Fill up and Go app; go to Starbucks and grab a caramel latte, using its customer app to pay for it; travel to the office and park in the nearest car park, paying with my RingGo app. However, it doesn’t just stop here. After sitting at my desk and doing some work; I will pop out to pick up my lunch from Tesco using my PayQwiq app; go back to the office for a series of meetings; buy my wife a birthday present on Amazon and pay through PayPal; then return home to take my family to Zizzi’s for dinner and pay for our meal with the QKR! app.

In comparison to ten years ago, we are now spoilt for choice when it comes to how we pay for goods and services. In the past, aside from cash, the main payment methods used would require the customer physically identifying themselves by either writing out a cheque or signing a receipt in order to use their credit or debit card. As technology developed over the years, the physical need for a signature largely decreased and the death knell for the chequebook was sounded, with people paying for goods with cheques on the high street declining from 13 per cent to 5 per cent in just seven years[1]. Chip and pin proved to be a much quicker and more convenient way for a consumer to pay, so it’s no surprise that we finally saw retailers banning cheques in 2011.

Not stopping at chip and pin, the payment industry has continued to create innovative customer-facing technologies that make it easier for customers to part with their money, for example, the introduction of contactless payment cards in 2011. Despite chip and pin devices still playing a large role in how we pay today, we’re witnessing an increasing amount of retailers embracing the technology. Contactless payments continue to gather pace with three billion contactless transactions being made using Visa cards on the continent in the last 12 months; nearly triple that of the same period in the previous years[2].

We are currently living in a culture of convenience, and with conflicting demands and increasingly busy lifestyles, consumers are seeking greater convenience in their shopping mission. Mobile payments are answering consumers’ hunger for convenience and it is predicted that by 2025, 65 per cent of all transactions are to be by mobile phone[3]. With this in mind, we are seeing big brands and retailers increasingly embracing mobile payment apps to offer their customers, not just for their convenience, but to help foster their loyalty. To add to this, Edgar, Dunn & Company revealed that 74 per cent of respondents believe large retailers will continue to move away from traditional POS terminals to mobile ones[4].

Brands and retailers clearly need to prepare for mobile payments but there is one factor we have to be mindful of. Unless there is a consolidation, we will soon find ourselves with too many different apps on our phones, which will undoubtedly lead to consumer confusion. Can you imagine the frustration caused in the queue as a less tech savvy customer feverishly scrolls through their apps to find the right one? Not to mention the embarrassment you would feel as a consumer if your phone ran out of battery mid-shop. In addition to this, many mobile devices will be unable to hold the deluge of apps you download, should every one of your favourite stores and restaurants introduce them.

Whilst a retailer’s app should be built upon the foundation of easy-to-use payment technology to keep their customers intrigued and continue to use it, the app needs to provide further benefits, whether that is the ability to collect loyalty points upon purchase, visibility on upcoming deals or even perhaps targeted marketing whereby the customer will be presented with similar goods or services they have recently bought.

To prevent frustrated shoppers from deleting apps whilst at the same time garnering their loyalty, retailers will need to consolidate their offerings. A handful of well-known German retailers including Alnatura, Aral, Galeria Kaufhof, Real and Rewe are already doing this by supporting a new integrated payment function in an app introduced by loyalty programme provider Payback. Through the scheme, customers collect points and pay for purchases at any of these well-known German retail outlets through a single app downloaded via the App Store or Google Play. This initiative from Payback proves that customer loyalty plays an increasingly important role within a payments app.

The UK retail landscape is changing, and the disruptive impact of technology is empowering customers and heightening their expectations of how retailers will serve them in the future. There will understandably be challenges that retailers will need to overcome but the benefits of an optimum mobile payments mix are clear. Those retailers that get it right will be the ones that incentivise customers through the likes of loyalty points and special offers; and underpin their apps with one of the emerging mobile payment platforms that are gathering popularity, whether it be Android Pay, Apple Pay or Samsung Pay.

By Ralf Ohlhausen, Business Development Director, PPRO Group

Author: Dylan Jones

Share This Post On
ATM Africa

43 Comments

  1. Foro Cialis Generico cialis Burpropionxl Vs Vyvance

  2. Buy Propecia Online viagra Pflanzliches Viagra Rezeptfrei

  3. Kamagra 100mg In Linea viagra Cheapest Female Viagra Australia

  4. What a information of un-ambiguity and preserveness of precious know-how regarding unexpected feelings.

  5. It is the best time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I want to suggest you few interesting things or tips. Perhaps you could write next articles referring to this article. I wish to read more things about it!

  6. Donormyl Kaufen cialis Progesterone Drugs Shipped Ups

  7. Order Birth Control Online viagra What Is Amoxicillin Bp

  8. Wonderful, what a webpage it is! This blog gives helpful facts to us, keep it up.

  9. Attractive section of content. I just stumbled upon your website and in accession capital
    to assert that I get actually enjoyed account your blog posts.
    Any way I’ll be subscribing to your feeds and even I achievement you access consistently quickly.

  10. It is perfect time to make some plans for the future and it’s time to be happy.
    I’ve read this post and if I could I want to suggest you some interesting
    things or tips. Maybe you can write next articles referring
    to this article. I want to read even more things about it!

  11. You actually make it seem so easy with your presentation but I find this matter
    to be really something that I think I would never understand.
    It seems too complicated and very broad for me. I’m looking forward for your next post,
    I’ll try to get the hang of it!

  12. This paragraph offers clear idea designed for the new visitors of blogging, that truly how to do
    blogging.

  13. Awesome blog! Do you have any tips and hints for aspiring
    writers? I’m planning to start my own blog soon but I’m a little lost on everything.
    Would you recommend starting with a free platform like WordPress or go for a
    paid option? There are so many choices out there that I’m completely confused ..
    Any tips? Thank you!

  14. What’s up i am kavin, its my first time to commenting
    anywhere, when i read this paragraph i thought i could also create comment due
    to this good post.

  15. Hey there! I just wanted to ask if you ever have any issues with hackers?
    My last blog (wordpress) was hacked and I ended up losing many months of
    hard work due to no data backup. Do you have any methods to stop
    hackers?

  16. We absolutely love your blog and find many of your post’s to be what precisely I’m looking for.

    Would you offer guest writers to write content to suit your needs?
    I wouldn’t mind writing a post or elaborating on a
    number of the subjects you write about here.
    Again, awesome blog!

  17. I appreciate, lead to I found just what I was looking for. You
    have ended my 4 day lengthy hunt! God Bless you man. Have a great day.
    Bye

  18. Thanks for the auspicious writeup. It in fact used to be a entertainment account it.
    Look complicated to more introduced agreeable from you!
    By the way, how could we communicate?

  19. Hello, i think that i noticed you visited my web site thus i got here
    to return the want?.I’m attempting to in finding things to improve my site!I assume its good enough
    to use a few of your ideas!!

  20. Right here is the right web site for anyone who wishes
    to understand this topic. You realize so much
    its almost tough to argue with you (not that I really
    would want to…HaHa). You certainly put a brand new spin on a
    subject that’s been written about for a long
    time. Wonderful stuff, just excellent!

  21. Howdy this is somewhat of off topic but I was wanting to know
    if blogs use WYSIWYG editors or if you have to manually code with HTML.
    I’m starting a blog soon but have no coding skills so I wanted to get
    guidance from someone with experience. Any help would be greatly appreciated!

  22. Hmm it appears like your site ate my first comment (it was super long) so I guess I’ll just sum it up what
    I had written and say, I’m thoroughly enjoying your blog.
    I as well am an aspiring blog blogger but I’m still new to
    everything. Do you have any tips and hints for rookie blog writers?

    I’d certainly appreciate it.

  23. This is my first time pay a visit at here and i am genuinely happy to read everthing
    at single place.

  24. Nice post. I learn something new and challenging on blogs I stumbleupon on a daily
    basis. It will always be helpful to read through articles from other authors and practice something from their websites.

  25. Admiring the dedication you put into your website and detailed information you provide.
    It’s nice to come across a blog every once in a while that isn’t
    the same out of date rehashed material. Great read!
    I’ve saved your site and I’m including your RSS feeds
    to my Google account.

  26. Hurrah! After all I got a weblog from where I can in fact take helpful information concerning my
    study and knowledge.

  27. I am in fact grateful to the holder of this site who has shared this
    enormous piece of writing at at this time.

Submit a Comment

Your email address will not be published.