Young adults and minorities at the forefront of mobile payment trends
September 18, 2013

Brands that target younger consumers or minorities may want to consider investing in tools that allow their stores to accept mobile payments. According to a recent report from Mercator Advisory Group, a research firm that specializes in studying the payment processing industry, young adults and minorities lead all other demographics in both their use of and interest in mobile payment technology.

A press release from Mercator Advisory Group said this trend correlates directly with smartphone ownership among U.S. consumers. In fact, as of June 2013, 75 percent of young adults owned smartphones. A large majority of Asian, Hispanic and black consumers of all ages in the U.S. also reported owning mobile devices.

"Mobile payment use and interest is growing, but there needs to be a compelling reason to launch a payment app at checkout," Mercator Group said in the press release.

According to Daily Deal Media, one such compelling reason may be the use of gift card programs and loyalty programs in conjunction with mobile payment processing. Such tools can benefit both businesses and consumers. For example, repeat customers often appreciate the opportunity to be rewarded for their frequent purchases. Similarly, loyalty initiatives allow brands to closely keep track of shopper behavior and payment data, which can be valuable in the long run.

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