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The Future of Mobile Wallets

The ability to pay for store purchases using your cell phone is quickly becoming a widely accepted practice. The new medium, which is called a mobile wallet, is quickly becoming a strong preference for many individuals over digging through a traditional leather wallet to find a credit card or debit card to pay for their store purchases. Imagine the convenience of being able to pay for your coffee at McDonald’s with just simply a few taps on your smart phone? The technology is still in its infancy, but it’s already a $200 plus billion industry that is expected to grow to $700 Billion by 2017. A recent study noted three different takeaways from experts about the future of this nifty new technology. These would include the following:
Mobile Wallets Delivers Value to Marketers Even Today
Marketers are always looking for the next big thing in order to help them increase their bottom line. Even today, mobile wallet technology can offer some value to them because it can enable marketers to aggregate offerings and entice new customers by offering loyalty points and coupons. Marketing professionals will find that their customers can get a more streamlined process where they can easily access information about their favorite products. Moreover, the convenient payment function of mobile wallets will enable marketers to offer extended brand promise functions, strong conversion rates and the ability to drive an exponential amount of traffic and sales conversions. Consumers want an expect their mobile wallet to deliver a better shopping experience. In particular, the top five things US consumers smartphone users are interested in accessing on their phone:
57% Loyalty programs points and rewards
56% Coupons, discounts and special offers
52% Price comparisons for items I want to by
50% Product information for items I want to buy
50% Make a reservation at a restaurant
Mobile Wallets Will Become Powerful Marketing Platforms Within the Next Five Years
Mobile Wallets are primed to become much more than just a payment program. Platforms such as PayPal and Apple will offer their buyers a contextualized customer loyalty program, so it is up to entrepreneurs and marketers today to test the mobile wallets now. In September 2014 during the launch of the new iPhone 6 devices, the Apple Watch, and Apple Pay services, Tim Cook, CEO of Apple, summarized the potential opportunity by saying, “The vision is to replace the wallet. And the starting point is payments.”
Leaders Should Look at Mobile Wallets’ Potential Beyond Payments and Offer Contextual Programs
Mobile wallets expand far beyond just payment programs, marketers should look at new strategies to use those mobile payment processors. Experts in this field highly recommend that marketers mobilize their loyalty programs and update content on a regular basis. As pointed out in the Forrester report, The Future Of Mobile Wallets Lies Beyond Payments, “Apple’s Passbook can be integrated with existing marketing campaigns leveraging current mobile email or SMS campaigns without necessarily having to develop a specific program test. Such campaigns will let marketers know the most efficient distribution channels (e.g., SMS, email, direct mail, or mobile ads) to engage customers within mobile wallets.”