10 Ways Mobile Payments Can Change Customer Interactions
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Forbes Finance Council
Successful accounting, financial planning & wealth management executives from Forbes Finance Council share trends and tips.
Consumers regularly carry their smartphones wherever they go, so having the option of using their devices to make payments adds one potential way of making lives simpler. This idea is gaining popularity: Worldwide global mobile payment revenue is expected to reach $930 billion in 2018, according to statistics cited on Statistica.
This growing trend of mobile payments helps provide people with more flexibility, allowing customers to make payments without having to worry about having cash or credit cards on hand. It also represents an opportunity for businesses, both online and brick-and-mortar, to reach out to their audience, as well as smooth out sticking points in the purchasing process.
So what can businesses expect, as the technology becomes more common? Below, 10 members of Forbes Finance Council discuss the opportunities that the rising mobile payments trend will bring, as well as weigh in on how the technology will influence interactions with customers. Here’s what they had to say:
1. New Monetization Opportunities
Businesses will continue to focus on improving their customer experience, specifically on mobile. Once a well-crafted customer experience with clearly defined touch points is in place, new monetization opportunities will emerge. – Ben Taylor,SoftLedger
2. No Lines And Quicker Checkout
We’re already seeing this happening. As mobile payment services increase accessibility, speed, and security, we’re seeing the need for carrying plastic cards disappearing day by day. Case in point would be the advent of the new Amazon brick-and-mortar stores, where payment is tied to a mobile device. We see mobile payments going into things like bracelets, rings, and of course, smartphones and tablets. – Jared Ross Weitz, United Capital Source Inc.
3. Customized Targeting Versus Mass Marketing
With the advance of digital wallets and mobile payments, we are moving towards a cashless society. To remain competitive, businesses would have to enhance the overall customer experience. Businesses would now have to first analyze each customer’s spending habits, their current location and then direct customers to special deals and promotions where they are able to download more information. –Breana Patel, Bonova Advisory Inc
4. Increased Personalization And Convenience
We’ve seen a huge migration to mobile shopping. Another development has been personalization. I expect that there will be one-click purchasing, through email, apps or even text. As companies know more about their customers and options like Apple Pay exist, purchases can be completed with one click. Companies that take advantage of this will capitalize on consumers’ desire for ease and speed. – Drew Cook, Pact Apparel
5. Death Of Branch Banking
Just look at the roads you drive on en route to work. Most vacancies are old bank branches being taken over by coffee shops. The idea of physically going into a branch bank, in my opinion, will not exist in five years. Your smartphone is all you need to deposit checks, check balances, etc. Start to get used to it now because soon you may not have a choice. – Lance Scott, Bay Harbor Wealth Management
6. Creation Of A New Marketing Channel
Mobile payments are skyrocketing in popularity, and with good reason. They’re more convenient for both merchants and consumers. They’re more secure, as cashiers don’t have access to customer credit card information. Perhaps most excitingly for businesses, they create a new marketing channel to reach proven customers through loyalty programs and personalized offers linked to their mobile wallet. – Ismael Wrixen, FE International
7. Improved Customer Service
We’re already seeing a transition of retail establishments moving their offerings away from a storefront or brick-and-mortar type of establishment to more internet-based services. In the service industry, I think it is slightly different. These businesses can incorporate technology like mobile payments, along with high levels of customer service, to make a drastic impact on your customers. – Justin Goodbread, Heritage Investors
8. Increased Customer Loyalty
Business-to-business mobile payments are evolving at different velocities, by industry. Some businesses are aggressively building infrastructure to facilitate payments, especially technologies or networks that connect buyers to suppliers. The ability to seamlessly interact with clients and to help with cash flow is fueling this trend. This move towards a frictionless and enhanced experience will increase customer loyalty. – Wei Ke, Simon-Kucher & Partners
9. Location-Based Marketing
If we continue to see more adoption of mobile payment methods, I expect to see an increase in real-time marketing on your mobile device or directly to signage, based on proximity to your mobile device. This would bring some relevance back to a retail shopping center, and create competition to the growth in web-based purchases. –Scott Karstens, NFG Brokerage
10. End Of The Pause
Businesses will make a lot more money because they are removing buying friction. At one time, consumers used to pause and think about the purchase. Those days are gone. This could quietly become an epidemic that steals from the wallet of the middle class. Consumers should train themselves to “pause” before clicking the “buy now” button. – Darryl Lyons, PAX Financial Group LLC
Forbes Finance Council is an invitation-only, fee-based organization for executives in successful accounting, financial planning and wealth management firms.