For mobile payments, actual use of the system is really only half the battle.
Mobile payments systems also need to have users download the system in the first place.
Then the downloaders need to put it to use, and sometimes, there are logjams in both points of the system that keep users away from being full users.
Samsung recently launched a new rewards program that targeted those who downloaded Samsung Pay, but haven’t actually used it yet, in order to make them more active users.
Those users that fit into that narrow mold will be able to get in on the program, which calls for users to actually use the program that’s already been downloaded three times in the space between April 15 and May 10.
After those three times have been counted, users will then get a $30 gift card—a digital gift card, actually—for one of several locations, including GameStop, Best Buy, Regal Entertainment, or even eBay.
This is a noteworthy program, because it’s giving a clear incentive for those downloaders, but non-users, to make the jump to actual users.
A good move, but it’s easy to wonder here why Samsung is actively alienating such a large portion of its user base, both active and potential.
Those who download the app now hoping to get in on the program will be out of the game, and those who have already downloaded and use the app likewise get nothing.
This is limited only to those who have already downloaded the app but never actually used it.
It would seem like this is a narrow portion of users, and though it’s a smart idea to turn downloaders into actual users, this is a program that might ultimately do more harm that good.
If it’s not followed up in fairly rapid fashion by a sound loyalty program for established users, it might well get those current users wondering why they’re sticking around.
It’s also not helping to break the inertia of familiar payment systems for those who aren’t using Samsung Pay.
It seems like Samsung’s leaving quite a bit of cash on the table with this approach and it needs, badly, to get all the users it can in on the action.
Samsung’s new program is a great new start, but it’s only a start.