What Makes Mobile Wallets Successful

Apr 24, 2017

Consumers tend to be positive about loyalty programs, mobile ads, and chatbots and they like making a purchase from a smartphone, though they were somewhat reluctant to change their payment habits when mobile wallets appeared years ago.

Retailers like Starbucks and Dunkin’ Donuts are succeeding thanks to their mobile wallets and corresponding loyalty programs. These merchant wallets are leading the overall mobile wallets industry as they offer innovative features such as rewards programs, coupons, mobile order-ahead, and custom marketing.

Merchants on the lookout for a reliable and low-cost merchant account should consider turning to emerchantbroker.com, the #1 high risk payment processor in the US. EMB offers secure merchant accounts, including a gun merchant account, to merchants of any type and size. EMB has an a+ rating with the BBB and A by Card Payment Options. EMB is named one of Inc. 500’s Fastest Growing Companies of 2016.

According to BI Intelligence, there are several factors that add to the success of these mobile wallets with the help of which retailers can most effectively enjoy increased sales, traffic, and average ticket size.

These factors are associated with the following:

  • The mobile wallets of retailers who have large addressable user bases who are loyal and act as repeat visitors will go on to be popular with consumers, especially as merchants aren’t quickly adopting near-field communication (NFC) technology, as well as there are weak offerings by universal mobile wallets such as Apple Pay and Samsung Pay.
  • Loyalty programs will play a significant role in retailer mobile wallet adoption. Companies like Starbucks and Dunkin’ Donuts have been able to use their loyalty programs to maximum advantage to acquire mobile wallet users. This has resulted in store traffic and conversion rates.
  • If these programs are leveraged, sales are likely to increase at a 5-year compound annual growth rate (CAGR) of 68%.
  • There will be increased competition in the field and the adoption will begin to slow down by 2020. Universal mobile wallet players begin to add effective loyalty programs and coupons to their offerings, so adoption for retailer-based mobile wallets is expected to decelerate because these offerings are their main marketing points.

According to Sophie Vu, chief marketing officer for Chicago-based Vibes, a mobile engagement consultant and researcher, the mobile wallet is interesting in that people think of it mainly as a payments vehicle, after all “Pay” is in the name of most of them.

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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.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

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.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

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.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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