Mobile wallet use is expected to increase "more than a third by 2020" as more cell phone users adopt mobile payment tech. As brands begin honing their customer engagement strategies they are beginning to see increases in adoption and use. Here are some ways for financial institutions to leverage their existing platforms, increase engagement and stave off the competition of third-party fintech platforms.
Paypal and Visa were the first to see mobile wallet use among their customers. Early on, users preferred Paypal and Visa over their banks' mobile offerings. The reason? Paypal and Visa were able to accommodate merchants and those merchants began offering digital loyalty cards, rewards, coupons and other incentives through the mobile wallet platform. Now banks are catching up and prioritizing customer engagement. By working in collaboration with merchant apps, FI mobile wallets are able to compete with digital-only organizations.
The Power of Existing Platforms
Once users are engaged with a certain mobile wallet it may be hard to convince them to switch. But there are several benefits to bank-centered mobile wallets. The first is security. Banks have higher standards, better encryption, and it makes sense to stay within the protected virtual walls of your preferred banking institution than continue on with mobile wallets with questionable security.
Other reasons to switch include: foreign currency exchange, the option to pay with or without a card, personal budgeting and peer-to-peer payments. In addition, banks have the ability to increase value-added services customized to their particular user base.
Educating consumers on the benefits of bank-centered mobile wallets should increase usage. Continued emphasis on customer engagement will keep those clients within a platform they already use and trust.
How Netclearance Can Help
Fintech companies can get involved today by accepting mobile payments from smartphones and wearables outside the 'walled gardens' of Apple, Google and other NFC systems. Click here for more information on how our next generation mobile payment beacon provides a compelling proposition for fintech companies.