3 Reasons Why Retailers Need Mobile Payments

In today's retail world, more and more consumers are searching for faster and simpler ways to make purchases. Whether shopping online or in-store, innovations such as self-checkout aren’t enough anymore. The mobile wallet has emerged as a way to enhance the customer experience and edge out the competition.

Mobile Wallet Usage is Growing

In 2017, 48.1 million people in the United States used mobile payments. In 2018, that number grew to 55 million, meaning 20.2 percent of the entire U.S. population took advantage of mobile payments. And this year, experts are forecasting that number to grow to 61.6 million, a steady rise over the past two years.

Looking beyond the U.S., approximately 79.4 percent of smartphone owners in China have made a proximity mobile payment over the past six months. Across the country and internationally, the benefits of mobile payments are catching on.

Mobile Payments: Fast, Secure and Customized

Retailers such as Walmart and Starbucks are already using mobile payment options and seeing great results. What’s attracting these retailers to mobile payments? Here are three reasons why:

1. Transactions Completed in Mere Seconds

Mobile payments only take mere seconds to complete. They’re faster than chip and magnetic strip cards, allowing for a speedy checkout process at the point of sale. In this fast-paced world, a few seconds shaved off each transaction can get lines moving faster and improve customer satisfaction.

2. Personal Information is Secure

Consumers are vigilant when it comes to the security of their personal information. Mobile payments are secure, using authentication, monitoring and data encryption to protect bank information and demographics. In fact, banking on mobile devices is considered more secure than traditional payment methods, thanks to the makeup of mobile operating systems.

3. Customized Services for Customer Retention

Starbucks is known for having the leading mobile payment app. In fact, 23.4 million consumers use the Starbucks app to make in-store purchases. For the coffee chain, it isn’t just about speed. Instead, customers can use Starbucks app to pay for their coffee while saving money with customized rewards and special offers tied to their account. And Starbucks, in turn, gets to make the most of their customer behavior data, instead of sharing it with payment providers.

Start Using Mobile Payments for Your Retail Business

Retailers can take advantage of these benefits by allowing customers to pay without standing in line, offering personalized discounts via rewards programs, and providing the security that consumers crave. To learn more about innovative ways to enhance mobile payments, get in touch.

Chris Ostoich is co-founder and head of innovation at LISNR, the world’s leading ultrasonic data platform.