Incentives May Drive Mobile Wallet Use

Jul 18, 2019

For mobile wallet use to really take off, companies are going to need to bring a little something extra the table.

People like getting rewards, discounts, and other perks from using credit cards. When mobile wallets get in on the action by offering incentives for usage, expect use to blossom.

Some Background on Mobile Wallets

Experts in the payment industry have predicted that mobile wallet use will thrive for years. However, despite having the branding and support of tech super giants, like Apple and Google, use hasn’t really gotten the boost everyone expected.

Many people said that as contactless card use spreads, it would be the push consumers need to transition to mobile wallets. However, a recent study issued by the New York-based research firm, Auriemma Research, says contactless cards actually will have the opposite effect. The firm noted that using a contactless card will not only be familiar to consumers but faster that using a traditional plastic card.

Is This the Wrench that Throws Off a Potential Surge in Mobile Wallet Usage?

According to this firm, yes. After canvassing more than 2,000 consumers in January and February, the firm found that those who were eligible to use Apple Pay, Google Pay, or Samsung Pay, it found that shoppers were existed about using contactless transactions. However, it was difficult to project that their excitement would translate into greater enthusiasm and use of mobile wallets.

The rollout of new contactless cards meeting new near-field communication standards also continues to lag. JP Morgan Chase & Co. began issuing cards during the last several months, and Visa predicts about 100 million dual-interface cards will be circulating in this nation by the end of 2019. Since they are dual-interface cards, people can either tap or insert them into readers at terminals.

Since contactless-card transactions are faster than mobile payments, tech companies are going to have to do more to encourage use. Offering greater rewards for using wallets may be the turning point for consumers. There is no incentive for using Apple Pay, for example, but the company is offering rewards for using its contactless cards. Its cashback incentive program will start as soon as Apple cards are released in September. Additionally, the card will integrate with its iPhones and wallet. Making this move may be what triggers companies to offer them for wallet use.

In Conclusion

Rewards can make all the difference in the world in terms of wallet adoption and usage.
However, it is important to remember that increased security and organizational features couldn’t hurt either. These are especially important since these two features that are something consumers not only ask about but will embrace.

Overall, the more value you can provide, the more interest it will garner. For mobile wallets to truly soar, companies are going to have to give themselves that no one else has – safer transactions, a new tool, or a speedier checkout. Once that happens, the rest will fall into place. Innovation will always win.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

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Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

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A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

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