How coupons could boost Samsung Pay
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BIISamsung Pay, which has reached its one-year anniversary in the US, will give in-app users access to Quotient Technologies coupon service. Samsung Pay users will be able to redeem gift cards from many of the nation’s major retailers, as well as the ability to earn rewards through merchant membership programs. By continuing to add features and services, Samsung Pay is moving towards a much more inclusive mobile wallet that encompasses more then just debit and credit cards, this could be very appealing to consumers.
Consumers want more from their mobile wallets.
- Loyalty cards and coupons are among the most desired features for mobile wallet users. 60% of users have used a loyalty card through a mobile wallet, and two-thirds of users want to, indicating considerable demand. Coupons, which come alongside loyalty programs, are the second-most popular — 62% of customers want coupons, and 53% have used them. It's worth noting that Samsung is the only major mobile wallet offering coupon functionality right now, which might drive users to the wallet and further its existing ubiquity advantage.
- Mobile payments are seeing low adoption. Though 55% of consumers — still high, but just the fourth-most popular function — want to pay via credit card in their wallet; just 23% have done so, indicating room for improvement. That means that the new feature could help onboard new customers to Samsung Pay who then might form habits around the service, therefore increasing adoption.
Evan Bakker, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile payments that forecasts the growth of in-store mobile payments in the U.S., analyzes the performance of major mobile wallets like Apple Pay, Android Pay, and Samsung Pay, and addresses the barriers holding mobile payments back as well as the benefits that will propel adoption.
Here are some key takeaways from the report:
- In our latest US in-store mobile payments forecast, we find that volume will reach $75 billion this year. We expect volume to pick up significantly by 2020, reaching $503 billion. This reflects a compound annual growth rate (CAGR) of 80% between 2015 and 2020.
- Consumer interest is the primary barrier to mobile payments adoption. Surveys indicate that the issue is less the mobile wallet itself and more that people remain loyal to traditional payment methods and show little enthusiasm for picking up new habits.
- Integrated loyalty programs and other add-on features will be key to mobile wallets taking off. Consumers are showing interest in wallets with integrated loyalty programs. Other potential add-ons, like in-app, in-browser, and P2P payments, will also start fueling adoption. This strategy has been proved successful in China with platforms like WeChat and Alipay.
In full, the report:
- Forecasts the growth of US in-store mobile payments volume and users through 2020.
- Measures mobile wallet user engagement by forecasting mobile payments' share of their annual retail spending.
- Reviews the performance of major mobile wallets like Apple Pay and Samsung Pay.
- Addresses the key barriers that are preventing mobile in-store payments from taking off.
- Identifies the growth drivers that will ultimately carve a path for mainstream adoption.
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