As convenience prevails, it could be easily suggested that cash is on the decline. We all know how frustrating it can be when we're out shopping, or catching the bus to find that you've spent the last of your cash and you need to make the detour to an ATM instead. For those of us that may find ourselves in this situation often, contactless payment cards for the small daily transactions have become a welcome relief. These new payment methods are becoming increasingly popular, with up to 10,000 Londoners a day choosing to swipe their card to pay for the £1.40 bus fare instead of using cash or even their Oyster card.
Contactless payment cards aren't the only new payment tool that's changing the payments landscape. Mobile payment and wallet solutions are set to transform how consumers manage their money and interact with merchants. For businesses, while this can seem like a daunting transformation, this transition can offer a wealth of new insight and contact points between the organisation and the customer.
Mobile wallets in particular can provide great value for consumers and merchants alike, enabling not only easy and secure payment options but also hosting customer loyalty details as well as sending targeted discounts and rewards from preferred vendors. For the retailer, the mobile wallet facilitates customer interaction opportunities and shares insight that may have been elusive before. These interactions can include in- store loyalty programmes, vouchers or location based services for customers.
Despite the clear benefits to both consumers and merchants alike The Logic Group's recent mobile loyalty survey, conducted by Ipsos MORI highlighted that there remains a segment of society where trust in mobile payments technology requires attention. The survey of 1,010 UK consumers in March 2013 found that of consumers who trust their retailer, 54% said they would be happy to house their loyalty cards on their mobile to collect and redeem points without cards. While this shows positive progression in perceptions for retailers, it also shows that good work must continue to build consumer's trust.
Change is afoot with many consumers already driving the transformation. However, to reach the consumers that remain reticent of new payment methods, retailers must continue to build a relationship of trust in order to have a strong foundation for new technologies moving forward.