Educate your clients, then show them how easy accepting contactless payments can be.
Mobile wallet usage in the U.S. is reaching a tipping point. According to Forbes, over half (53%) of Americans use mobile wallet apps more than traditional payment methods. Furthermore, that same survey found that 78% of Gen Z consumers say they would stop shopping at a merchant if they couldn’t use mobile wallet payments there.
It’s quite a turnaround in the last decade. COVID-19 can take some credit for accelerating the trend, as consumers quickly shifted from handling cash and using payment terminals to contactless methods at the beginning of the pandemic. Mobile wallets gave them a way to pay without touching. They only had to open the app on their smartphones, wave or tap it near a payment device, and complete payment. More than half a billion people worldwide switched to mobile wallets during this time.
Since trying mobile wallets during the pandemic, many consumers have realized the benefits of this payment method. It is a secure payment method, using the same rails as EMV payments and leveraging some of smartphones' security features. Couple that with the inherent convenience of paying with a device that’s always in your pocket, and it was an easy decision for many consumers to use mobile wallets. Additionally, the apps make it easy to track spending and keep track of loyalty rewards and other information.
As more consumers make the switch, mobile wallet adoption will continue to grow, and Grand View Research is looking for a phenomenal 36% CAGR through 2030.
How to equip merchants to accept contactless payments.
With the broad adoption of mobile wallets among consumers, merchants must accept them to meet the expectations of a broad range of consumers. Merchants may need to upgrade their hardware to accept contactless payments in-store with near-field communication (NFC) technology. Others who have upgraded to accept EMV payments may already have the ability to accept contactless payments but may not have enabled it.
Also, remember to take a holistic view of your clients’ operations, which have probably evolved in other ways since 2020. Your clients may be managing more buy online, pickup in store (BOPIS) sales, curbside pickup, online ordering for restaurant meals, and other processes with mobile devices. Ensure their mobile POS solutions are capable of accepting contactless payments so customers can use this payment method however they engage.
Assess your clients’ payment technology and advise them on whether they need an upgrade or need to work with you to add this payment method to the services they offer.
Also, keep in mind that not all mobile wallet payments are tap-and-go payments in-store. Many consumers use mobile wallet payments online or when using apps. Forbes found that 50% of respondents to its survey stated they use mobile payment apps when purchasing from online retailers.
Also, share the results of a PYMNTS study with your clients. Among the respondents to that survey, 60% of consumers say that being able to use their preferred payment method was either the most important factor or an extremely important factor in choosing a retailer. If a merchant does not accept mobile wallet payments, they could lose business to their competitors who do.
Make sure you are ready.
Don’t be caught off-guard in 2024. The market is changing rapidly — and opportunities are available for sales partners with the foresight to pursue them.
Begin by educating your customers about this trend. Then, show them the solutions you offer that will enable them to accept mobile wallet payments wherever their customers transact.
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