Mobile Wallets at Tipping Point of Adoption
- Wednesday, July 27th, 2016
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Mobile wallets are approaching a tipping point in the UK, with the majority of consumers having used one, and most wanting to use it more, according to a new report by mobile engagement specialists Urban Airship.
However, there are large gaps between what consumers have in their mobile wallet and what they want, suggesting a strong demand for a wider range of purpose built items and a more versatile functionality.
The report, which focused on the marketing opportunities rather than payments, found that regardless of age or gender, British consumers want to use mobile wallets to communicate with brands about sales, offers, coupons, loyalty programmes and more.
Both Apple Wallet and Android Pay enable smartphone userrs to receive and store content such as event tickets, boarding passes, coupons and loyalty cards, as well as make mobile payments with credit and debit cards.
Brands are increasingly using the non-payment capabilities of mobile wallets to engage consumers. 45 per cent of Brits have now used mobile wallets, with 23 per cent having done so in the past week. Among under 35s, 60 per cent had used mobile wallets, compared to 40 per cent of those between 35 and 54.
Coupons in mobile wallets are used more often and can drive in-store traffic, with 58 per cent of respondents more likely to use coupons if they receive reminders of upcoming expiration dates via their mobile wallet. 41 per cent of Brits admitted to “always” or “often” letting coupons expire or go unused, even on products theyre interested in.
“Businesses are looking for new lightweight, service-oriented ways to communicate with customers on mobile, and our findings make it clear that mobile wallets will lead the next wave of mobile engagement,” said Brett Caine, CEO and president of Urban Airship. “There is a shift underway in how consumers want to interact with brands. They want relevant, personal and useful content with as little friction as possible.
“Billions of dollars are at stake as offers, loyalty, ticketing and membership shed paper and plastic to become items in a mobile wallet, and virtually any type of business can gain tremendous advantage from the simple, persistent and addressable customer connection they provide.”