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Posts filed under category : mobile wallet

Mobile payments vs. mobile wallets: Why brands should adopt

Author: Megan Bortner

An increasing number of brands and consumers are adopting mobile payments, but just as many are unconvinced. The Federal Reserve reports, those reluctant to make the switch don’t see the benefit (61%) or believe it’s easier to work with old-fashioned cash and credit (76%). Yet mobile payments are more than here to stay.  A look at the data may help convince brands to see the benefits of adopting mobile payment. The performance results from early adopters are conclusive: adoption of mobile payments increases sales. As has been long observed with credit cards, switching away from cash and to technology causes consumers to spend 12% to 18% more. McDonalds, for example, reports that credit card purchases average $7, compared to the $4.50 average for cash. Mobile payments are the next logical step in credit-based purchasing as they further reduce the friction at pay points and can help to drive a better customer experience that fosters brand loyalty. According to Forrester Research, the growth in the mobile payment market is expected to continue and is projected to reach over $142 billion by 2019.  Those brands which adopt now are more likely to earn a larger share of this market and garner more customer loyalty.

Tags: Article, customer experience, mobile wallet, mobile payment, Topic, Mobile

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