Microsoft Wallet isn’t exactly one of the first things people think of when they think of mobile wallet, but that’s not a development Microsoft itself is taking lightly. Or at all, really. To that end, it’s brought in JPMorgan Chase, who plans to start offering support for Microsoft Wallet at some point next year.
That’s good news for Microsoft Wallet, and by extension Microsoft, as Chase’s involvement means involvement from a large swath of major United States banks, including Bank of America and PNC Bank. That’s a fairly substantial market base to operate from, and with the support of big names like these, it’s got a significantly better possibility of being adopted for use in general.
The bad news, however, is that Microsoft Wallet is still, despite its bank support, a latecomer to a popular market, which means most people have really already found their mobile wallet system of choice, and it’s going to take a really impressive product offering to change minds. Thankfully for Microsoft, mobile payments systems haven’t been adopted with much widespread fervor, so there are still plenty of users out there who haven’t made a decision one way or the next. Microsoft also suffers from one significant problem: Windows Phone users are some of the smallest minority in the smartphone market, so Microsoft Wallet doesn’t exactly have a lot of user base to work with. Even with the banks’ approval, users are probably much more likely to use a platform that will work with their current phone. Users aren’t likely to change smartphones because their bank likes a different mobile payments system.
So Microsoft here has a new advantage, but it doesn’t address two of the biggest problems that Microsoft has so far: a comparatively slim user base to reach at maximum, and a comparatively slim following against entrenched alternatives. The answer to these issues is simple, though extremely difficult to execute: Microsoft must offer an alternative that’s sufficiently compelling to pull users not only out of different mobile payment systems, but out of different mobile device camps altogether.
Microsoft needs to exercise, as a basis, some of the simplest developments. Microsoft needs an instant connection to store reward programs. It would be a good idea to get a few rewards programs exclusive to Microsoft as a promotional tool; now get five percent off your meal at Taco Bell by paying with Microsoft Wallet. These measures are just a start, and easily imitated.
In order to take a place in this market, Microsoft desperately needs to present value to the users. Without that value, Microsoft Wallet will be continually empty.