Below are more opportunities and challenges facing mobile wallet integration
Opportunities
Rural Areas
Rural areas always have a huge impact on the overall economic development of any country. In the same remote are you find that most people do not have bank accounts. By using mobile wallets people can conveniently create bank accounts without physically going to a bank branch. Mobile wallets also present transparency in a business transaction in the rural area. The increasing number of mobile and internet users in the rural area will pave ways for the use of better digital payment solution over time.
Payments and Loyalty
Most households in the United States have joined more than 15 consumers’ loyalty program but only participate in less than eight. Research shows that most consumers are reluctant in using a consumer loyalty program if it is not accompanied by a Smartphone app. A total of 69% of people reported that they continuously use they loyalty card if it was on their phone.
The secret to mobile payment usage is loyalty, not payment. It is clear that consumers engage more with brands that they are loyal to. Companies can gain consumer engagement by offering discount and rewards within mobile wallets.
Increase in Number of Smartphone Owners
Not long ago surveys were carried out to show the growth of Smartphone ownership. Now, 4 in 10 people own a Smartphone. The number is still growing as more people are anticipated to be owners of a Smartphone. With the high increase in Smartphone owners, so is the number of mobile payment users. Consumers can only use a Smartphone to make mobile payments hence this cannot happen if they do not have one.
Increased Interest in Mobile Payment among Smartphone Owners
More people who own Smartphones understand and are interested in cashless payment than before. This is evident in the younger and the more tech-savvy population. The Federal Reserve survey pointed out that 3 in 10 people are open to using cashless payment if the opportunity arises.
More people in today’s world have shopping apps on their phones. They check prices, research items, purchase goods, and check receipts and coupons. This shows that price indications and detailed information increase the gratification of mobile-oriented consumers. Most of this consumer would be interested to use their mobile wallets instead of credit cards.
Mobile Banking and Inventive Mobile Payment Application
More banks are now offering mobile banking services to their customers. A huge number of mobile owner use this service to transfer money from one account to the other, check their balance and recent transaction. This service acts as a catalyst to increase the use of cashless payment. Financial institutions have also come up with inventive applications for mobile transfer.
Mobile remote deposit capture is one of the applications that is steadily gaining popularity. Through the application, consumers can easily deposit their checks by taking a photo of the check and sending it electronically to the bank. This promotes efficiency and convenience for the bank and the consumer. Satisfied mobile banking consumers are more likely to adapt to mobile wallets than other.