The sophistication of today’s mobile payments technology not only has the ability to streamline payment processes for companies operating within a range of industries. Now, it is enabling many companies to drive traffic and increase their conversion rates, by offering consumers fast and simple ways to pay for content and services directly through their mobile device.
Advancements in mobile payments technology are giving consumers the chance to pay for goods instantly via their mobile without requiring physical cash or a credit card. This has revolutionised the payments industry and according to Business Insider UK, mobile payments are now expected to grow at a rate of 80% to over £500 billion by 2020. However, this growth has also allowed consumers to become more connected to the services they are paying for, which ultimately helps companies to gather data about customers more frequently and on a much larger scale.
These developments are now offering significant benefits for the companies implementing mobile payments, by enabling them to transform normal data into smart insights about their customers. These new forms of intelligent data which can be collected when consumers pay through their mobiles are essentially small, valuable insights which together can be turned into actionable data to address both customer and business challenges, improve efficiency and increase sales.
By connecting with customers through their use of mobile payment methods, companies can increasingly look into specifics about their customers and wider consumer behaviours. For example, when consumers pay through a mobile device, insights such as buying behaviour, what time consumers are using their phones, how often they are visiting sites and on which devices can now be gathered and analysed. As a result, companies are able to build smart profiles about the people engaging with their products, giving them a better understanding of how best to tailor their services to their ideal consumer.
Not only does this make it easier for both the consumer and the company to operate in an increasingly digital world, but it also allows companies to successfully target the right audiences and ensure consumers are satisfied with their payment journey, which is now a very valuable tool for merchants in any industry.
The benefits of this strategy can already be seen across various sectors worldwide. For example, the media industry, which has grappled with the mass transition to digital in recent years, has been able to drive revenue and engagement through the integration of mobile payments. By working with mobile payments providers, media companies can now gather smarter insights about exactly who is paying to access their content through a mobile device. Not only is this helping them to adapt their targeting strategies to effectively reach the desired audience, but it is also increasing conversion rates by offering consumers a more convenient way to pay for content anywhere and at any time.
With companies able to access this extra layer of consumer data through the integration of mobile payments technology, they can now use it to their advantage by enhancing the purchasing experiences of their customers. In an economy swimming in loyalty programmes, and with 55% of UK online smartphone consumers now interested in having access to loyalty programme points and rewards on their mobile device, tailoring experiences using the smart data gathered by mobile payments can not only help to drive repeat purchases amongst customers, but can also improve brand loyalty within an increasingly competitive landscape.
However, in order to gather these smart insights about consumer behaviour and engagement with products and services, there are now growing demands for greater synergy between mobile payments providers and the companies implementing their technology. This relationship now means that mobile payment providers and merchants alike must maintain high levels of convergence in order to continue their own growth whilst adapting their offerings to give consumers more convenient ways to pay and interact with their services.
Companies are therefore working together to turn data into smart insights about their consumers and use them in a way which best serves all of those involved. For the merchant, this will help them to achieve greater levels of personalisation, which can then be applied to the products they have on offer and to create a more unique and tailored service. For mobile payments providers, these insights give them a greater understanding of the types of consumers most likely to pay via their platform, giving them a better understanding of the types of companies they should be integrating with. What’s more, it will allow them to streamline the payment process for customers, which will encourage further collaboration with brands and in turn attract new partners for their company.
Due to the high demands for convenience and intelligence across today’s market, companies should undoubtedly be making the most out of the smart data they are able to gather through means like mobile payments technology, in order to gain a clear understanding of consumer behaviour and how best to target their ideal customer successfully. Ultimately this will increase the appeal of their service amongst potential consumers and business partners.
Looking towards the future of mobile payments and the benefits they serve for merchants, businesses will undoubtedly continue integrating mobile methods into their payment strategies to ensure they are able to gather intelligent insights surrounding engagement, usage and buying decisions of consumers within today’s ‘always-on’ market. Companies that are now investing in the necessary capabilities, technologies and relationships with mobile payment providers will therefore certainly begin to reap the benefits now and for many years to come.