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Digital Payments Go Mainstream.

Today it’s easier than ever to purchase something with a smartphone or computer – whether that is through Belly, Venmo, Apple Pay or PayPal. What was originally thought of as a niche convenience service is quickly becoming an expectation as consumers are carrying less cash, and checks and credit cards are becoming less relevant. In fact, one-third of Americans believe tap-and-pay payment will replace cash payments within the next five years, and 3 out of 10 Americans think tap-and-pay payment will replace debit cards and credit cards in the next five years.

Digital payment solutions may be just becoming mainstream, but they aren’t a new idea. They were first introduced in the mid-’90s but with little success. Recently they’ve gained more traction, and companies are pursuing their own digital wallet offerings. This fast-moving industry has led to significant amounts of research observing consumers to gain a deeper understanding of the mobile payment user and the mobile wallet experience. While this research has found that consumers are drawn to cashless payment systems for a multitude of reasons, three main themes stand out.

Convenient and Quick

Long lines and wait times consistently top the list of current consumer pain points for in-store checkout. Cashless payment, especially mobile payment, helps speed up those lines by eliminating the need to dig through wallets or purses. Many consumers use cashless payment to replace even small transactions previously paid for with cash. After all, scanning is much quicker than finding, swiping and signing at the register.

Track and Organize

Recording receipts and balancing budgets between different types of payment is time-consuming. Consumers are more likely to use payment options that make it easy to track and monitor spending with real-time records of expenses.

Store Rewards

Consumers want to be rewarded for purchases and for shopping with specific retailers, and they are signing up for programs that promise ways to save with coupons or loyalty benefits. Starbucks has had success with its loyalty program, giving consistent customers rewards for continually using their app. Members earn stars that are redeemable for in-store items, motivating customers to buy more and seek out Starbucks over other coffee shops in order to use their rewards.

The days of clipping coupons and balancing checkbooks are coming to a close, but there is still a long way to go. How will you stand out? Differentiation is essential in the digital payment landscape, so take your consumers’ needs and preferences into account. What works for one business might not work for another, so tailor offers to include these aspects, but also be unique to your brand and consumer.