Loyalty programs and mobile wallets

Loyalty programs entice shoppers to spend more

How many loyalty cards do you have?

 

Shopping and loyalty programs go hand-in-hand. No matter where you go, more often than not, retailers will ask you to sign-up for their loyalty card. This card allows you to earn and redeem points or rewards usually in the form of discounts or in-store cash. For retailers, loyalty programs have become a must-have offering as shoppers who use a rewards card tend to spend more money per visit and also shop more frequently.

Recently, several retailers have been quite successful with creating and marketing their own mobile wallets based around their loyalty program. Shoppers can download the store branded wallet which allows them to have quick access to their loyalty account and they can also include store branded charge cards for easy payment. Coupons, announcements, account information — all within one app providing a streamlined customer experience.

However, as loyalty cards & wallets continue to grow in popularity, the adoption of mobile wallets have been primarily taken on by millennials. The task at hand is convincing everyone else that mobile wallets are the way to go. The theory is that by integrating loyalty programs, the adoption rate will pick up and more people will use mobile wallets for all aspects of their shopping experience. Apple Pay, Samsung Pay and Android Pay have already incorporated loyalty capabilities, allowing users to store multiple reward cards into the app. By doing this, the hope is to encourage shoppers to interact with their digital wallet every time they shop.

 

What does this mean for the payment industry?

 

Mobile wallet adoption is continuing to grow and is becoming a standard method of payment for many shoppers. To avoid customer exclusion, merchants should be prepared to accept all payment types without worry or concern for additional set-up.

Point of Sale developers can ensure their merchants have the ability to accept mobile wallets by using the latest payment gateway technology from Payworks. By doing so, all of the current payment technologies including mobile wallets such as Apple Pay, Android Pay and Samsung Pay can already be accepted starting from the initial set-up.

 

Written by Jana Riddick, Marketing & Communications Manager at Payworks
First published on Medium on 19-01-2017