Mobile Payments May Be Key to Better App Experience

August 7, 2019         By: Steven Anderson

Businesses are increasingly discovering that their mobile app is one of the best things that ever happened to their business. Providing an excellent source of analytics fodder for big data analysis, as well as a way to step up business in general through increased convenience, apps can be a great way to connect with customers. Yet many retailers may be failing to provide one critical core point of the app market: a proper mobile payments system to use within.

Research conducted by LISNR noted that around 78 percent of consumers, nearly four out of five, have five or fewer apps from merchants on their mobile devices. That might sound odd, but in a field where there around five million merchant apps available, that’s one serious gap.

It’s a gap that’s closing, though, and has been ever since Starbucks—pretty much the poster child for mobile payments at the retail level—built its own all-in-one app. That’s providing a blueprint for other retailers, one that seems to be catching on if a bit slowly.

As LISNR co-founder Chris Ostoich noted, all it takes to get consumers interested is the word “pay” and a decent pack of incentives. Holding interest beyond that point, however, requires a little more work and high-quality customer experience. That can take several forms; 46 percent of customers would happily download an app if it allowed them to skip checkout lines and pay from their phones.

Incentives don’t really have to stop; they can just take on new forms. Adding loyalty reward programs to mobile payments systems is a proven winner and has been for some time, at last report; just giving users an easy way to keep track of their purchases and when the conditions for reward have been achieved can be a big gain. I don’t know how many times I personally lost out on a free sub or what have you because I lost the punch card. Keeping it all contained on an app may be just the way to go.

We could go in many different directions when it comes to adding incentives. Whatever incentives we add, though, those need to make appearances on retail apps soonest to help ensure the attracted interest stays in place, and stays shopping.