Build loyalty programs to generate mobile payment adoption
May 01, 2013

Mobile payments will play a major role in the future of retail. Financial experts project a cashless landscape within the next decade, with numerous studies estimating portable devices will overtake the retail market through mobile adoption by retailers. A recent study found loyalty and gift card programs drive mobile payments for many small- and medium-sized enterprises and can help businesses invest in the purchasing platform.

Customer loyalty programs drive mobile payments
A recent consumer survey conducted by Accenture, a management consulting company, found over half of respondents said they would increase their mobile payment transactions if they were able to manage their brand loyalty program memberships on their smartphones. The survey polled about 4,000 smartphone users last October.

About 60 percent said they were more likely to pay using their smartphone if they had the ability to track their spending at the store by phone. More than half of consumers who already use mobile payment processing said they would use the purchasing platform more often if the business sent out digital coupons that could be accessed from a phone at the point of sale. Accruing loyalty points are also important, as 51 percent of all respondents said they would like to store rewards on their phone for future purchases. 

Loyalty program incentives, such as digital coupons and reward points, can help businesses secure customer loyalty while generating revenue through mobile payment processing. The survey found almost one-third of customers who did not use the purchasing method would do so if they were able to use their portable device to track their spending at the store. Loyalty programs offer consumers preferential treatment, and about 20 percent of those who don't pay via phone also said they would use mobile payments if they were able to access their loyalty coupons on the go.

Small- and medium-sized companies may want to consider investing in software that integrates mobile payment processing and loyalty programs, such as Sage Gift Card and Loyalty Programs. Customer rewards can go a long way in driving sales, and giving consumers payment processing options can help businesses retain clients. As more customers understand transaction security through the purchasing method and the number of smartphones on the market increases, companies can boost revenue and consumer satisfaction by integrating a loyalty program and mobile payment processing. 

Nexus: G-WEBCD2