For nearly a decade, tech specialists have predicted that the speed at which consumers begin adopting mobile wallets as a preferred payment source would tick up in the near future. While there has surely been some ground gained in this regard over the past few years, industry insiders say adoption isn’t really at the point they’ve required yet. However, many remain hopeful that this could change in the near future.
Specialists recently released a report to clients which noted that to this point, mobile money solutions really haven't reached the level many might have expected when important platforms started rolling out a few years ago, according to Business Insider.
Apple, Samsung and Google have all released – and put some significant clout behind – their mobile wallet platforms, but use still lags somewhat; only a little more than 1 in 4 iPhone owners have used Apple Pay at least once, and just 8 per cent have become frequent users.
“Despite much publicity in the launch, Apple Pay, Samsung Pay, and Android Pay have tried to gain traction,” the analysis said. “Apple Pay is powerful among the digital wallet solutions, with 90 per cent of all mobile phone contactless U.S. transactions on Apple Pay.”
Digital banking users who are actively involved with services such as electronic bill payment and person-to-person payments are both more true and valuable.
1. How to improve the adoption of mobile payment apps
Maintaining and growing adoption and usage of electronic payments services is a goal of many banks and credit unions — a purpose that is hampered by a lack of consumer awareness of these services and their benefits.
A well-prepared, multi-pronged marketing plan is key to addressing the lack of awareness and helping to train current and potential users of mobile and online payment service features and advantages, leading to increased adoption and acceptance and greater customer engagement.
This greater adoption of digital payment services positively affects the ROI of mobile banking consumers as well as reducing friction and overall value to serve, according to consumer payments analysis research.
2. How you can support electronic bill payment and person-to-person payments
a) Strong Onboarding Programs: It is necessary to involve potential users within the first 90 days of a new customer connection as part of an overall financial institution onboarding strategy.
A strong communication plan might begin in the branch with direct enrollment in online and mobile banking and bill payment ended with an educational demo, or with an email containing helpful links and tips that are sent after a customer opens their account online.
Joining an email and/or direct mail piece at the 30-day mark can serve as a tangible reminder to new customers to sign up for payments services.
The study discovered that 70% of bill pay subscribers in the United States enrol in the service within the first 30 days of joining a financial institution. Bill pay onboarding activities performed within the first 60 days of a customer joining also drove more avid bill pay usage and lowered attrition.
b) Ongoing Communication: Leveraging event-triggered email marketing as part of continuous communications with the customer will help boost alertness and drive usage of electronic payments.
Financial companies that leverage lifecycle messaging applications, in which outreach is triggered automatically at several stages in the customer relationship or by specific events such as the extension of a new payee, can essentially increase the use of electronic payments.
On average, financial institutions that engaged in a lifecycle messaging program saw a 6% increase in the number of people making electronic bill payments and a 5.5% increase in the number of payments.
One financial institution noticed the number of people making a payment after initial registration grew 32% during the 18- month period following the launch of a lifecycle program.
c) Benefit-Oriented Messaging: Customers typically are not looking for a deep dive on the technical details of banking service. Instead, they want to learn how such a service will benefit them, explain their lives and help them better control their finances.
To be compelling, messaging used in continuous or campaign-specific information should highlight benefits while anticipating particular barriers to adoption and use. Financial institutions can proactively approach the potential concerns of a prospective user, such as security, by educating them about the service.
This is an opportunity to mention attributes such as authenticity and encryption of data, as well as specific skills your financial institution may provide, such as the ability to control accounts with signals or turn debit cards “on” and “off” from the mobile app to help prevent fraudulent card use.
d) Empowerment of Staff: Educating and enabling front-line staff is a key component of a financial institution’s overall digital engagement strategy. Assistants who are well versed in digital services, and who use these services themselves, are more likely to increase the benefits.
3. How to educate customers on digital payments?
Consumers may not be close with digital services or may not be using them to their fullest. Others may be involved but intimidated and unsure of how to get started. Each of these situations offers an opportunity for a staff member to step in to train the customer or offer a helping hand.
Additionally, contact centre staff have as much communication, if not more, with the public as branch staff. Contact centre staff who are well versed in electronic payments services and how they can help users can not only discuss customer issues and questions, they can become effective advocates for these services.
Many organizations have contact centres with staff that manage payment inquiries on behalf of financial institution clients. It is important to leverage these contact centre agent communications to educate them on the features and perks of electronic bill payment.
We have seen an improvement of five payments for those who were introduced to the benefits of bill payment and sent emails to strengthen what was discussed. Whether in the branch or the contact centre, trained staff can help drive increased product usage.
a) Incentives and Cause Marketing: Supplementing regular marketing tricks with incentive-focused campaigns can result in good improvements in transactions, enrollments, people making payments for the first time, and reactivations.
Combining incentives to good causes resonate with today’s more mindful consumer. Cause marketing campaigns give financial institutions a way to share the interests of electronic payments while helping the community.
For example, the annual “Season of Giving Campaign,” held every holiday season, helps people be part of a charitable campaign by making their daily financial works. After completing work such as paying a bill online or paying a companion via person-to-person payments, customers are entered to win a cash prize while a donation is made to a national nonprofit.
4. How to meet customers expectations?
Consumers seek out payments services that meet their expectations for safety, reliability, speed and convenience. Creating awareness of payments services early on in the contact positions the financial institution as their customers’ primary source for payments.
Financial institutions that produce and successfully promote these services can grow used and adoption, leading to more loyal, more valuable and more engaged customers.
a) Provide Customers With Knowledge: There are many issues that might hold back more widespread mobile wallet adoption. Possibly one of the biggest among these is knowledge and familiarity. At this point, most people just do not have much hands-on practice with mobile payments. Despite the loss of mobile adoption, consumers today are typically more educated, more connected, and more difficult.
It is essential for merchants to tap into that and give customers what they want – freedom. If consumers know about the mobile payment opportunities that a business offers, they will understand how much easier their shopping experience can be.
For those clients that are already informed of mobile payments and have a wish to use them, merchants need to make it known that their store allows those types of payments. They can do this by encouraging their staff to let customers know or simply giving signage near the payment terminal that informs customers that the store is mobile payment operational.
b) Create Better Experiences: There are a lot of steps that merchants can enhance the overall experience for customers through mobile payments and wallets. For one, some mobile payment points include ordering ahead, which allows customers to place their food orders ahead of time and then skip lines to pick it up.
5. How to enhance customer experience
Another way to enhance the customer experience is through pay-at-the-table. Customers no longer need to wait for their server to bring them the money, which helps get customers out the door faster. Another means that mobile payments can create better practices through services and bills.
If a customer has the option to pay for a service or bill with their mobile wallet that can greatly increase a customers’ overall experience with that house. Mobile payments can be utilized to help resolve pain points for consumers, which will, in turn, drive customer adoption and help increase sales and loyalty.
a) Offer Rewards, Perks, Or An Incentive Program: Digital wallets are available with clear potential for merchants to encourage new customers and increase loyalty. Once a merchant has their mobile payment system in place, they can create incentives to encourage repeat visitation and usage.
Merchants can push targeted offers and coupons straight into customers’ digital wallets, which is a great way to start opening usage. To build repeat usage, merchants can combine a loyalty program, which creates value for customers over time.
The best part of this is Starbucks’ mobile app. Their app records reward delivers rewards and offers the ability to pay through the app. Another advantage of incentive and loyalty programs is the data it offers.
You are ready to provide customers with a more unique experience by targeting their purchasing habits. The more merchants can do on their end to support mobile wallet and EMV use – often simply by giving them as payment options at checkout – the better off the entire payments ecosystem will be going forward.
Nikunj Gundaniya, Product manager Digipay.guru, one of the leading Digital wallet solutions, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.