Transaction-based incentives are driving the use of mobile payments both in-store and in-app across the US, research from Auriemma Consulting Group (ACG) shows, with those who received an incentive to use mobile payments in-store over a one-week period doing so 4.6 times compared to 3.1 times for those not offered an incentive.

Auriemma Consulting GroupSome 25% of US consumers are now using mobile payments both in-store and in-app and, of these consumers, with 86% of consumers who recall being offered a mobile payment incentive are now going on to claim the offer at the point of sale.

ACG’s Mobile Pay Tracker — based on a survey of 1,505 respondents with mobile payments compatible smartphones — also showed that 32% recall being offered a mobile payment incentive at checkout, compared to 19% of consumers earlier in the year.

For in-app payments, incentivised shoppers purchased four times in a week, compared to 2.4 for those not offered an incentive.

“In the past, these incentives were primarily offered by banks, but in ACG’s most recent study, the proportion of banks offering incentives to their customers compared to last quarter dropped from 58% to 40%,” the company says.

Incentive opportunities

“Merchant-funded offers are now most prevalent (46%) and regardless of who offered the incentive, nearly eight in 10 respondents (78%) report their offer was linked to a specific merchant. Many consumers, however, are not seeking these incentives out — most hear about them from friends, or through emails or letters.”

“Incentives provide an opportunity for issuers and merchants to have consumers associate their brand with the payment method, which could turn out to be valuable long-term investment,” says Jaclyn Holmes, director of ACG’s payment insights. “Incentives can give consumers the push they need to use mobile pay.

“Their greatest impact will be on consumers on the cusp of using the method, but who need an additional nudge.”

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