Report: Mobile Wallets Disappoint
Many mobile wallet users want more from their mobile wallets, such as sales offers, coupons, order delivery updates and loyalty programs, and marketing and loyalty opportunities using mobile wallets has gone largely untapped, according to a recent study, “The State of Mobile Wallet Marketing,” conducted by Urban Airship, a mobile engagement platform provider.
Some two-thirds of millennials (ages 18-34) reported using a mobile wallet within the last three months. A little more than half of Generation X used (ages 35-54) a mobile wallet and 28 percent of Baby Boomers (ages 55 and older) reported using a wallet in that time period. The report also noted that households with higher incomes use mobile wallets more: 62 percent for households earning at least $60,000 and 39 percent for households earning less than $60,000.
The report surveyed 1,000 U.S. and 1,000 U.K. consumers. Mobile wallet usage is higher in the U.S. than in the U.K., 63 percent to 45 percent. But the study says the disparity might be caused by Apple Pay and Android Pay launching earlier in the U.S. than in the U.K.
The report examined several facets of mobile wallet usage, including loyalty. Mobile wallet usage increases participation in loyalty programs. Overall, 69 percent of consumers are more likely to use a loyalty card when incorporated on their phone. More than 80 percent of millennials will participate in loyalty programs on their phone, compared with 73 percent of Gen Xers. No data was given for Baby Boomers. In households earning more than $60,000, 78 percent are likely to participate in loyalty programs, compared with 65 percent of households earning less. What’s more, 73 percent of consumers are more likely to use mobile payments if loyalty discounts are automatically applied.
The report also noted the features consumers want and have used. The top five features consumers want in their mobile wallets are loyalty programs (67 percent), coupons (62 percent), order delivery updates (57 percent), mobile payment via credit card (55 percent) and to be able to display boarding passes (55 percent). The top three features that consumers have used on their mobile wallets are loyalty cards (60 percent), coupons (53 percent) and a boarding pass feature (36 percent). Other features that consumer have used include displaying event tickets, order delivery updates and mobile payment via credit card, all of which were in the 23 to 26 percent range.
Providers that can fully tap into the marketing and loyalty opportunities capable with mobile wallets and give consumers what they want will separate themselves from the rest of the crowd, the study notes.