Connected Consumers the world over are ready for mobile payment. It is little wonder then that retailers, payment card providers and operators are all vying for a piece of the mobile payment pie. The advantages it offers are many: Retailers can use it to better target consumers, technology brands as a means to grow their business and financial services operators to increase demand for their offering.
For large retailers, mobile payment offers the opportunity to segment and target consumers much more effectively with highly personalized offers and incentives. Discounts and offers can be integrated into mobile payment, replacing the need for physical coupons and entering information into a terminal. Connected Consumers will wave goodbye to the traditional checkout queue and benefit from a wealth of customized rewards.
With the advent of services such as Square, mobile payment offers a chance for small retailers to move into a new era of retailing. Freed from high transaction fees and with new ways to connect with consumers, small retailers can now embark on the kind of personalization and targeting that has to date been the privilege of larger players.
For technology brands, mobile payment presents a chance to shine. Brands including Apple, Android and Samsung are forging ahead and winning over Connected Consumers with devices that meet and exceed their need for convenience. High-end handsets with “tap and pay” technology are leading the way and winning points for innovation among tech-savvy users, although they have yet to achieve mass market penetration. This is an area where cooperation is paramount – technology companies must work closely with financial services operators if they are to grow what is, at present, a nascent market.
As more providers enter the market, financial services operators such as Visa, Mastercard and Amex are experiencing a significant growth in demand for their services. The addition of players such as Google and Amazon has created a flood of transactions and significantly increased the size of the market. Although many transactions may be small in size, this is a volume business and the entry of major online players will change the fortune of financial services operators for the better.
Do you agree? Please email me to share your thoughts at Tim.Spenny@gfk.com.
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