How Mobile Wallets are Changing Retail · Mobile wallets make it possible to track consumer spending and generate more meaningful insights. According to this month’s Retail Perceptions.

InsightsOutdoorIn-Store

February 2015

RETAIL INDUSTRY INSIGHTS FOR TODAY’S RETAILERS AND CPGS

THE EVOLUTION OF PAYMENT

How Mobile Wallets are Changing Retail

© 2015 Interactions Consumer Experience Marketing, Inc. | www.interactionsmarketing.com1

The Evolution of Payment: How Mobile Wallets are Changing RetailDid you know that one in three shoppers already use mobile wallets? The ability to pay with the simple swipe of a phone is evolving from a mere novelty to a necessity; and mobile wallets are on track to become even more popular than many retailers may be ready for. In the latest Retail Perceptions report from Interactions, shoppers were asked about their habits related to mobile wallets and the results solidify the notion that mobile payments are more than just a passing fad. Over 64 percent of users prefer to shop at retailers that provide mobile wallet payment options and approximately the same amount would spend more if they could use mobile wallets to pay for items. Add to that the fact that all of the major credit card networks in the U.S. participate in at least one mobile wallet solution—and it’s clear that this is a trend that can’t be ignored.

Look for the opportunity symbol throughout the report and be sure to check out the end of the survey for actionable opportunities for Retailers and Manufacturers

February 2015

Opportunity!

30% OF SHOPPERS CURRENTLY USE MOBILE WALLETS TO PAY FOR PURCHASES

We’ve identified some insightful and sometimes surprising statistics.

Get This!

64% of mobile wallet users

would rather shop at a retailer that

provides a mobile wallet payment option

61% would spend more at a retailer if they could use a mobile wallet to make purchases

Opportunity! and

© 2015 Interactions Consumer Experience Marketing, Inc. | www.interactionsmarketing.com 2

36% MOBILE WALLETS INFLUENCE SHOPPER BEHAVIOR

CONVENIENCE TRUMPS SECURITY

of these shoppers stopped shopping at that retailer altogether

of mobile wallet users have left a retailer without making a purchase because mobile wallets were not accepted

Save

s Tim

e

Co

nve

nie

nce

Reta

iler

Rew

ard

s

Disc

oun

ts

Even though more than half of mobile wallet users have privacy concerns, that doesn’t stop them from using their phones to pay for items. For these shoppers, the reward outweighs any possible risk

Get This!

59%

© 2015 Interactions Consumer Experience Marketing, Inc. | www.interactionsmarketing.com3

Nearly 62.5% of users pay with mobile wallets at least once a week—of these shoppers, use their mobile wallets every day

MOBILE WALLETS: HERE TO STAY?

#4 RESTAURANTS

#1 ONLINE STORES

#2 MASS MERCHANDISE STORES

#3 COFFEE SHOPS

#5 DRUG STORES

#6 GAS STATIONS

19%

54-64 year olds

6%

18-34 year olds

58%

35-54 year olds

36%

Where do shoppers

use mobile wallets?

Mobil Wallet Use Among Age Groups:

Opportunity!

Get This!

© 2015 Interactions Consumer Experience Marketing, Inc. | www.interactionsmarketing.com 4

Nearly 62.5% users pay with mobile wallets at least once a week—of these shoppers, use their mobile wallets every day

MOBILE WALLETS: HERE TO STAY?

With the use of mobile wallets, retailers have the opportunity to manage loyalty programs and offer personalized product offerings and promotions in a way that can’t be done with credit cards. Mobile wallets make it possible to track consumer spending and generate more meaningful insights.

According to this month’s Retail Perceptions report, shoppers will use a mobile wallet if it is convenient or they receive rewards in exchange for using it. Let your shoppers know what incentives they will be receiving in exchange for using a mobile wallet—whether it’s shorter time at checkout, additional loyalty rewards or store discounts.

Are the majority of your shoppers uninterested in the latest technology trends or will a lack of technology make them shop elsewhere? This month’s Retail Perceptions report found that 36 percent of shoppers have left a retailer because mobile wallets were not accepted. Talk to your shoppers and understand what’s important to them. Interactions offers insights capabilities that enable you to get to know your shoppers, such as customer intercept surveys, web based and receipt surveys.

OPPORTUNITIES FOR RETAILERS AND CPGSMobile wallets are a reality and are fast becoming an expectation among a growing number of shoppers. In fact, 62% of shoppers who don’t use a mobile wallet now expect to use it within the next year. For retailers looking to join the mobile payment revolution, most experts agree it all comes down to knowing your audience. Will they use a mobile wallet tied to their credit card? What about their checking account? Is there an existing mobile payment system they already use and like that could work for you too? As with so many of the changes affecting the industry today, retailers must remember that consumers are now the ones calling the shots. Gathering the insights to deliver a solution that clearly takes consumers’ needs and preferences into account is the only way to truly succeed. Here are a few things to consider:

With more traditional forms of payment, by the time shoppers stand in line, swipe their credit card and sign the receipt, all that time ultimately slows down sales. The speed of mobile payments has the potential to improve foot traffic, throughput and sales—and the result is increased revenue generation.

A seamless experience in a retailer’s store, on its Web site and through its mobile app is increasingly becoming a must-have not just a nice-to-have. Mobile payment systems can help further that omnichannel experience for consumers. They may also provide an extra layer of security for consumers as compared to a traditional credit card swipe. Many solutions require users to enter a PIN, password or fingerprint before making a charge—and allow users to suspend or cancel their mobile wallets instantaneously if their phone is lost.

For more information, visit Interactions at InteractionsMarketing.com/retailperceptions

1 Increased productivity

2 What’s in it for shoppers?

3

Seamless and Secure 4

Personalization

5 Know your shoppers

This document is the result of primary research performed by Interactions Consumer Experience Marketing, Inc. Interactions’ methodologies provide for objective fact-based research and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this of this publication are copyrighted by Interactions and may not be reproduced, distributed, archived, or transmitted in any means without prior written consent by Interactions.

Interactions is the global leader in innovative retail solutions including product demonstrations, event marketing, consumer insights and merchandising services.

Interactions works with the world’s leading retailers and CPGs to execute in-store merchandising programs and approximately 3 million events every year.

We offer integrated sales and marketing programs that engage shoppers in-store and outdoor, and provide insights into shopper behavior and customer service that enable retailers and brands to make smarter business decisions and drive significant sales increases.

Founded in 1988, the company has offices around the globe and operates in North America, Europe, South Africa, Australia and Asia.

For more information, visit interactionsmarketing.com.

InteractionsMarketing.com

This primary research was conducted in January 2015 by Interactions with a representative sample of men and women ages 18-64 across all geographies, income levels and ethnicities within the United States. For more information on how to make this data work for you, visit www.interactionsmarketing.com.

About Us

For more information, contact: Kelly ShortDirector, Global [email protected]

In-StoreOutd

oor

Insights