This morning I’m reflecting on the upcoming holiday shopping season, which has essentially already kicked-off, and all the articles to come on how and why consumers are choosing this or that to pay for their gifts and celebrations this year.
Of keen interest to payments enthusiasts like myself is the potential uptick for mobile payments at the POS. I’m liking the efforts by leading retailers to get their payment apps out to market and leverage private label and stored value cards to motivate brand-loyal customers to pull out their smartphone at the counter. This kind of strategy makes great sense and gives the merchant maximum opportunity to not only push promotions out to customers, but make it SUPER EASY to use them at the check-out. Convenience plus value is a heady combination.
But what about general purpose cards stored in various “pay” wallets? Recent data indicates that consumer usage may be dropping off (see these survey results by Pymnts.com) which should tell us that consumers don’t see a great deal of value (yet) in switching payment forms from card to phone. But after the polling debacle of various elections around the world, I’m more than skeptical that surveying alone tells the story.
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