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Today, PunchTab released a new report on the growing popularity of the mobile wallet and other trends among consumers. The report highlighted which mobile payment apps are most popular, which features are most important to users, and what consumers would like to see in future mobile payment apps.
From the report, it was found that only 24% of smartphone owners have used one or more mobile payment apps, and the top concern from all age groups when using mobile wallets is the speed of check out.
Other Highlights from the report include:
- 55% of millennials want a single mobile payment app that can be used across multiple stores and offer loyalty programs
- The Starbucks App is the current mobile payment leader with over 40% of respondents citing it as their most used mobile payment app
- 67% of consumers don’t know if their favorite stores offer mobile payment options
The entire report can be read in its entirely here.
PunchTab’s founder Mehdi Ait Oufkir took some time aside to talk about the report, its findings and how retailers can improve the mobile app market for shoppers.
Question: What are some things retailers are doing to ease the checkout time/efficiency in their mobile market?
Mehdi Ait Oufkir: One interesting example that really stands out is the WholeFoods/Square partnership. It’s been the simplest and the most efficient example that I know about. More efficient than Apple pay, even. Select and pay for products online with the Square app, then go to the store to pick it up. No line at the checkout. No need to look for the products at the aisles.
Question: How can consumers feel comfortable storing credit card or personal data in mobile applications?
Mehdi Ait Oufkir: Two things must change. First, there needs to be a better way to deal with a security breach on the consumer side. Right now consumers are blind. If your physical credit card gets stolen, there’s a number to call. There must also be a similar, well publicized, consumer safety net for a digital security breach. Consumers should know where they can go to get help in the event that they need it. Brands, banks, and retailers can help ease concerns with better communication and customer support availability.
Second, app developers that store credit card and personal data should start thinking about user experience and not monetization. Most of these apps ask for critical information to profit. They should ask for this information only if it makes the application more convenient by an order of magnitude. Then users will feel more comfortable sharing their data.
Question: What in the connection with strong loyalty programs and strong mobile e-commerce apps for retailers?
Mehdi Ait Oufkir: Strong loyalty programs needs to engage with the consumers wherever they are- and on the right channels. If the consumer is asked to change his behavior to participate in the loyalty program, he won’t be loyal for very long. If there is a strong e-commerce app, the loyalty experience should match that. It is important to align with consumer behavior in terms of deepening loyalty. Connecting with consumers is the first step, understanding exactly who they are, followed by what their preferences are. But brands can’t stop there. For deeper adoption and to increase frequency of use and engagement, brands need to act on the insights they’re gathering. Mobile and e-commerce apps are an incredible tool for better understanding your consumers’ needs.