Mobile wallets are rapidly gaining momentum as effective and convenient payment solutions for many consumers. If you own a smartphone, then the chances are that you form part of the large percentage of users who currently make use of at least one mobile wallet application.
Last year, almost a billion mobile payments were made. This number is expected to increase to at least 1.3 billion within the next four years, particularly given the current COVID-19 crisis where touchless transactions are favoured over physical ones.
While one has every right to be impressed by these stats, it is important to note that the mobile wallet is by no means a one-trick pony. More and more retailers are discovering the benefits of using their mobile wallets as marketing channels too.
According to recent studies, mobile wallets are primed to become valuable marketing platforms within the next few years. Let’s take a closer look at the advantages of mobile wallet marketing to see what can be extracted from this hidden gem.
Mobile wallet 101
Before we delve into the benefits, let’s go back to the basics. What is a mobile wallet? These are applications that have the functionality to load cash and or store card information for payments as well as house vouchers, coupons, and rewards within the app on your smartphone.
This information can be used to make purchases directly from the mobile device. Some mobile wallets are already built into the smartphone (think Apple Pay or Samsung Pay), while others need to be downloaded from the relevant app store.
As a payment solution, mobile wallets hold numerous benefits for the consumer. The most obvious one is the convenience factor. Consumers no longer need to move around with several debit or credit cards. Information is stored in the app so that payments can be made with a simple touch of the screen.
Mobile wallets offer the added benefit of being able to pay for goods without needing to go to a physical store. Customers can select an item and pay for it, all from the comfort of the couch. In a time where more and more of us are moving towards contactless payments, mobile wallets are becoming an increasingly attractive prospect for both consumers and companies.
Opening the mobile wallet marketing channel
From a marketing perspective, mobile wallets give companies the chance to create value for their customers. Many businesses have begun incorporating branded content, personalised messages, regular updates and notifications, and even loyalty programs into their wallets.
Adding a loyalty program to a mobile wallet presents a huge marketing opportunity for retailers. Research has shown that consumers are more likely to purchase from a company that offers some form of rewards program.
Many businesses have taken note of this and now incorporate a loyalty program into their mobile wallet applications. By doing so, companies can effectively promote customer engagement by offering rewards, personalised deals, exclusive content, and discounts. Using the data collected from customer interaction within the wallet, businesses can tailor product offerings to match specific tastes. By integrating loyalty programs and other content, businesses can market a much sought-after personalised customer experience, all directly to a device that very rarely leaves the consumer’s hand.
A marketplace of opportunity
Marketers are becoming increasingly aware that mobile wallet marketing is a viable strategy. By utilising this digital marketing channel, retailers have the opportunity to reach out to more consumers than ever before with messages and content that appeals to them.
By infusing a loyalty program into the mobile wallet, businesses can effectively market their brand to their customer and incentivise them with cash backs, discounts, and other rewards. And customers can complete their purchase seamlessly through a frictionless and touchless transaction.
These benefits are too great to ignore and, if current trends hold steady, the mobile wallet marketing channel will continue to grow in popularity for the foreseeable future.
While the mobile wallet certainly presents a phenomenal marketing channel for businesses, the reality is that many companies may not be able to afford the cost of setting up their own digital payment solution and loyalty program. Because of this fact, retailers are increasingly making use of white label loyalty programs like the ones powered by UBU.
The UBU apps present a fantastic digital marketing channel for companies where retailers can join the UBU Marketplace and sell their products to an ever-expanding customer base. UBU’s mobile wallet functionality allows for seamless facilitation of payments, instant cashback rewards, vouchers, and special deals that mean small businesses won’t need to invest large sums to develop their own wallets. Read our recent article around the growth of the mobile wallet market, or visit our UBU for Business page to for more information about how UBU can help you reach more customers, more strategically.