Digital marketers are responsible for keeping up with the changing times. To create the best product or service, you need to constantly search for ways to up your digital marketing game. The latest trend digital marketers should consider is the popularity of mobile wallets.
Mobile wallets are cell phone apps that store bank information, making a physical wallet unnecessary. These apps process payments by using digital cards such as Apple Pay, Google Pay, and Samsung Pay.
In 2011, Google launched the first mobile wallet called Google Wallet. At the time, the global market size of mobile wallets was predicted to be more than $3 trillion by 2022. Quickly following the successful launch was the unveiling of Apple Pay in 2014 and Google Pay in 2018, which combined the wallet and digital card function. These mobile wallets have greatly shifted how we do things over the years, providing a new way for consumers to make transactions.
Recently, the COVID-19 pandemic has increased the preference and need for contactless payment options. In fact, 70.3 billion digital payments were made this past year.
To take advantage of this booming mobile payment method, digital marketers should learn how to best utilize mobile wallets in their strategies. Keep reading for all the facts, benefits, features, and challenges of mobile wallet marketing.
Mobile Wallet Marketing Facts
Knowing just how many users and profits mobile wallets can generate gives you a better sense of their value. To help you understand the importance of mobile wallet marketing, here are some statistics about the newest digital payment method:
- From 2021 to 2025, the total transaction value for digital payments is projected to yield a compound annual growth rate of approximately 12%. This data means that cash transactions are losing out to mobile payment methods.
- The mobile wallet market around the world will likely reach about $12 trillion by 2027.
- This year, the number of people in the U.S. using mobile wallets will reach over 100 million.
- Between 2020 and 2025, Apple Pay is projected to gain 14.4 million users, with Google Pay not too far behind at 10.2 million new users and Samsung Pay at two million new users.
- 32% of consumers have at least three mobile wallets downloaded right now.
- In 2020, 46% of American millennials used digital or mobile wallets for online shopping.
- All respondents from a 2018 survey stated they would save mobile wallet content on their device if it was personalized.
Mobile Wallet Marketing Benefits
If the statistics indicating the exponentially growing trend aren’t enough, learning the benefits of mobile wallets for businesses can underline their value even more. Check out these five benefits of mobile wallet marketing:
- Customer loyalty: Since all consumer information can be stored and accessed on a cell phone, loyalty programs are easier for customers to track.
- Engagement boost: In addition to engaging with businesses on their mobile wallet, consumers are able to interact with their favorite brands and offers beyond the app.
- Location tracking: Cell phones are able to locate users, so the content and offers that appear on their mobile wallet can be most relevant to them.
- More options: Offers and coupons within the app can be applied in a variety of ways, including in-app uses, online store visits, and in-store transactions.
- Easier couponing: With coupons available right on a customer’s cell phone, mobile wallets eliminate the need for email or catalogue coupons and can generate higher redemption rates as a result.
Mobile Wallet Marketing Features
To reap all the benefits of mobile wallets, you’ll need to know how to best use them. All mobile payment apps have similar features that allow digital marketers to enhance the customer experience and enjoy the business advantages of going mobile. Here are some of those elements:
- Push notifications: Alerts and notifications that appear right on a customer’s lock screen provide easily accessible reminders about offers and promotions.
- Personalized details: Businesses can customize their mobile wallet by adding a customer’s name, targeted content, and other personalized information tailored to that individual.
- Saveable offers: With a mobile wallet, businesses can offer promotions, coupons, and loyalty cards for customers to save on their cell phones.
- Consistent updates: Mobile wallets are able to provide consumers with real-time updates about their loyalty points and transactions.
- Protected tickets: For those in the travel or live entertainment business, mobile wallets make convenient destinations for keeping boarding passes and concert tickets safe.
Mobile Wallet Marketing Challenges
Although there are a variety of advantages that come with implementing mobile wallet marketing strategies, there can also be some hurdles. Before moving forward with your mobile wallet plans, take a look at these common challenges and determine whether they’re dealbreakers for you:
- Hesitant retailers: Even if digital marketers are on board, some retailers might feel reluctant to implement a completely new payment method. For example, 80% of retailers in a study were willing to use PayPal, while only 20% wanted to try Apple Pay. Some retailers may not want to deal with all the planning and training that comes with mobile wallet transactions, and others might prefer PayPal or traditional payment methods over mobile wallets.
- Security concerns: Mobile wallets use randomly generated numbers instead of 16-digit card numbers for transactions, which keeps sensitive bank information protected. Although this aspect of mobile payment methods could reduce the risk of fraud, it presents a learning curve for both consumers and businesses.
- Fewer rewards: With mobile wallets, consumers are unable to receive cash back or free airline miles from using a physical credit card. If digital marketers want to make mobile wallets appealing despite this disadvantage, they’ll need to rely on as many of the available benefits as possible.
Mobile wallets may have a few limitations, but their impressive statistics and benefits easily outnumber the drawbacks. As a result, digital marketers looking to update their clients’ business strategies should seriously consider mobile wallet marketing.
Want to learn even more about mobile wallet marketing? Check out the infographic below for everything digital marketers need to know.