How Consumers Are Driving Mobile Integration across Retail Channels

Written by FinTech Futures
11th August 2016

Source: Discover, Lucy Maher

What’s just as important as finding the right product while shopping or receiving fast, reliable customer service? Many of today’s consumers might say quick checkout.

And the payment form factor they are beginning to adopt? Mobile phones.

The number of consumers using their phones to pay for goods or services is expected to grow rapidly this year, according to eMarketer. In 2016, mobile payment sales are projected to reach $27 billion and users are expected to spend an average of $720, up from $8.7 billion and $376, respectively, in 2015.

But exploding mobile adoption is just one of a handful of customer behaviors that are making streamlined, integrated payments a must-have for many retailers.

“By accepting mobile payments, retailers could see a benefit in addition to faster checkout in the form of better understanding their customers’ wants and needs by gaining information on their experience, such as their participation with certain deals or offers,” says Alisa Ellis, vice president of global products and solutions at Discover.

Enhanced, More Relevant Offers

Almost all retailers offer variations of discounts or offers to loyal shoppers, but some retailers may run into an issue if these are delivered to customers at inopportune times. Discount codes sent to a consumer’s inbox may go unseen, or sent to junk mail. Even if a consumer plans on taking advantage of an offer, having to scroll through pages of emails at the checkout is not convenient.

What’s more, deals offered at checkout, such as on the back of a receipt or given to a consumer for future use, don’t enable that consumer to take advantage of the offer while in-store, where they are more likely to act.

What’s the solution? Location-based deals driven by mobile payment apps could give consumers relevant offers at the right time. Ninety percent of U.S. smartphone owners currently use location services, according to eMarketer data. Let’s say that a consumer enters a store on a sweltering August day and heads to the frozen foods section. If she has opted in to receive offers from the retailer’s mobile app, she might be presented with discounts on ice cream, popsicles or a host of other cold treats. Because the offer is being extended where the customer is, it becomes more relevant and easier to act upon.

Immediate Checkout

Due to strides in online checkout efficiency, consumers are becoming more familiar with and used to one-click shopping at major online retailers, where shipping and billing addresses, as well as their payment card information, have already been saved. This kind of technology can be applied in-store thanks to mobile apps. For instance, consider a consumer in a dressing room interested in purchasing something and the store doesn’t have the right size. That consumer could go into the store’s mobile app to pick out the right sized item, and a sales associate could access the customer’s account, send through an order for the item, and ship it without asking for personal data like billing, shipping or payment information.

“Retailers can think of mobile as a broad commerce platform,” Ellis said. “Mobile devices can provide relevant information to loyal customers, help retailer marketers build an understanding of shopping behaviors, and streamline and enhance the payment experience.”

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This article was brought to you by Discover Network. To read more on the world of commerce, visit Discover Network Perspectives.