Android Pay, Apple Pay battle continues; both see 8 percent transaction rates – report

According to Packaged Facts, other big players coming on the scene such as Walmart and Chase can present an upswing through their customer bases and ability to provide a reason for use, with 59 of consumers claiming no benefit as the reason for not using mobile pay.

With more than 79 % of respondents claiming that it is easier to use a credit or debit card at checkout, mobile payment providers need to create some sort of rewards system for users. For instance, Starbucks is known as a leader in the mobile retail industry, likely due to the fact that 80 % of users have earned its Star rewards through use of its mobile payments.

Mobile payments providers are also doing a poor job of convincing consumers these systems are just as safe, or more secure than traditional payment methods as 59 % claimed security was the main reason for not using mobile pay. However, there has been a small drop in this belief, as last year 69 % of respondents believed it to be unsafe.

Moreover, the report adds that Chase has a big opportunity to take the lead in the industry, as it has a substantial customer base and is providing a solution which combines NFC and QR code technology. Walmart Pay is also likely to create an upset, as it will be rolling out a mobile pay feature within its existing app, which means its 23 million active users will have access.

Therefore, retailers should seek to integrate mobile payments as an added-value component of their omnichannel payment and loyalty strategies. The key involves blending payments with loyalty programs and other add-value benefits, so that payments become a seamless part of a broader customer engagement experience.

What`s more, blending mobile payment options, in-app and at the register, with these broader set of options allows customers to pay any time, anywhere and to pay according to need, in-store, delivery and pickup, with the potential to get customer engagement and sales conversion rates. But they also provide retailers with data-driven payment and usage insight for targeting marketing and, depending on the type of wallet, can even help them manage customer payment method.