Consumers want three main things from mobile payments
by. Kristen Gramigna
Customers say they want convenient payment options, but how do you get them on board with making mobile payments? Make it a value-added benefit that simplifies and improves their retail experience. Here are three the main things customers want from mobile payments, and how to deliver them.
Lighten their load. According to a recent Accenture study on mobile payments, customers are far more likely to convert to regular mobile payment use once they’ve made that first transaction. How do you get them to give it a shot? Give them a reason to believe that mobile payment transactions offer a benefit traditional methods of payment cannot. For example, Starbucks, one of the leaders in the mobile payment revolution, has given customers tangible reasons to use the mobile app: It eliminated the need to take anything to the coffee shop except for a smartphone, and provided a better method than traditional swiping. Because the point of sale register (not the user) “scans” the barcode associated with the mobile payer to complete the purchase, a behavior (handing a card or cash to the person behind the register) hasn’t just been replaced — but eliminated. Whether that process is actually faster is unknown, but because Starbucks has provided a value-added convenience with its mobile payment apps, it’s emerged a leader in the technology, and consumer adoption of it.
Reward them in a meaningful way. Credit cards have done a great job incentivizing customers to use their products more frequently to pay for everyday purchases by offering rewards for use. Perhaps even more importantly, they’ve made it simple to redeem those rewards for things the customer actually wants, in their preferred format — allowing the choice of a statement credit, a paper check, a gift card or cash deposited to a bank account. Retailers can leverage the appeal of mobile payments by piggybacking on that notion, and giving users the opportunity to earn rewards, track their earning progress and redeem rewards seamlessly, without the need for additional “loyalty program” elements like a keychain card or punch card. Further, the message of the retail rewards value must be communicated overtly to create a perception of advantage: When customers use mobile payments (which may be connected to an existing rewards credit card), for example, they can maximize the earning power of their transactions.
Make them feel confident. Consumers have come to expect certain things from the checkout experience: presenting payment at the point of sale, signing a receipt, and at the end of the transaction being offered a proof of purchase, via hard-copy receipt or email. Because the Accenture study revealed that security and privacy issues associated with mobile payments remain a major barrier (45 percent of respondents to the survey said they don’t use mobile payments because of security concerns), the mobile payment process should feel familiar and non-threatening — especially to new users.
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