Whether you already have a steady career or you’re in the middle of the job search, all current and aspiring digital marketers should know about the latest trend: mobile wallet marketing.
Mobile wallets are apps that save payment information and allow consumers to make purchases from their devices using digital cards such as Apple Pay or Google Pay. By 2022, the mobile wallet market size around the world is projected to be worth more than $3 trillion.
The rise of this new payment method has made it necessary for those in the digital marketing field to use mobile wallet marketing. This modern technique utilizes mobile wallets to upgrade the customer experience and improve business performance.
If you want to impress employers with your knowledge of the latest trends or level-up your business strategy at your current job, knowing the ins and outs of mobile wallet marketing is the way to go. Keep reading for everything you need to know about mobile wallets and how digital marketers can use them.
Background on Mobile Wallets
Although many marketers are just now hopping on the trend, mobile wallets have been around for a while. In 2011, Google teamed up with MasterCard, Citigroup, and Sprint to launch the first mobile wallet.
This early version utilized near-field communication to send data between nearby devices. After the launch, a report predicted that mobile payments would earn over $86 billion in profits and generate 141 million users.
In 2014, Apple unveiled Apple Pay, serving as the first competition for Google’s mobile payment method. Google then created Google Pay in 2018, which offers both the Google Wallet and Android Pay functions all in one app. Both Apple Pay and Google Pay remain the dominant mobile wallets today.
Differences Between Mobile Wallets
Although the different mobile wallets started as close competitors, it’s important to know what sets them apart. For digital marketers, this information might inform your business decisions.
Even though Google was the first to launch a mobile wallet, Apple has become the company dominating the digital payment game. According to a report, Apple Pay is expected to gain around 14.4 million new users between 2020 and 2025. At 10.2 million new users, Google Pay is a relatively close second. The third option is Samsung Pay, which is projected to gain two million new users.
Apple Pay may be gaining millions of users, but retailers are still hesitant to give mobile wallets a try. Only 20% of retailers support the use of Apple Pay, while 80% are willing to use PayPal for mobile payments. As a result, Apple Pay now offers the ability for some Mastercard users to make payments in store, online, or in the app.
Google is also trying to adapt to retailer and consumer demands. In November 2021, Google Pay is projected to undergo a major design overhaul. In addition, the app will likely add a new reward system and other features intended to give them more of a competitive edge.
While Google Pay is adding rewards, Samsung Pay is removing them. This year, Samsung announced that it plans to shut down the in-app points incentive program and only make rewards available on the Samsung website or in stores. The change could remove incentives to use Samsung Pay over more traditional payment methods.
Statistics About Mobile Wallets
Beyond an analysis of specific companies with the most popular mobile wallets, it’s important to examine the broader trend.
The fact is that more consumers are choosing to avoid cash transactions. Between 2021 and 2025, the total transactional value for digital purchases is projected to yield a compound annual growth rate (CAGR) of 12%. This impressive statistic suggests that mobile wallets are a worthwhile investment and an important skill for digital marketers.
In addition to CAGR, the number of users is also increasing. Last year, almost one-half of millennials in the U.S. made payments using digital wallets. Beyond the popularity among younger individuals, mobile wallets are a growing preference for all age groups. In fact, more than one in three consumers currently have at least three mobile wallets downloaded on their devices.
Benefits of Mobile Wallet Marketing
Evidently, the use of mobile wallets is on the rise. As a result, digital marketers should aim to incorporate this new technology into their business ideas. To implement mobile wallet marketing most effectively, it’s critical to know what mobile wallets have to offer.
For starters, the mobile format makes it easy for customers to keep up with loyalty programs and simple for retailers to streamline them. The ability to track a user’s location using their cell phone also allows businesses to cater offers to the customer’s unique needs and preferences.
In addition, mobile wallets make coupons available at your fingertips, which could lead to higher redemption rates. Finally, mobile wallets can encourage engagement in multiple ways, such as purchases within the app, clicks to the company website, and trips to the in-person store.
Elements of Mobile Wallet Marketing
The main features of most mobile wallets allow businesses to enjoy all the benefits mentioned above. Digital marketers should utilize the following elements in their mobile wallet marketing strategy:
- Personalization: Mobile wallets allow businesses to add personal elements, such as references to a customer’s name, content catered to their interests, and more customizable elements.
- Notifications: Alerts and push notifications on mobile devices can inform users of the latest rewards and offers.
- Updates: Mobile wallets make it easy for customers to monitor their loyalty points, which encourages them to keep making purchases in order to reach the next loyalty status.
- Tickets: Many users prefer mobile wallets for airplane or concert tickets, since the digital option eliminates the hassle of printing tickets.
Mobile wallets have already gained significant popularity among both consumers and retailers, and the trend is only expected to keep growing. To stay ahead of the curve, digital marketers should equip themselves with mobile wallet knowledge and consider adding mobile wallet marketing to their strategies.
For more information about mobile wallet marketing, check out the infographic below.