Well the day has come and gone and Apple Pay is here! Retailers have been preparing to accept this new payment system and have equipped themselves with the necessary POS terminals to do so. Although the system may be a little shaky out of the gate, like anything else, it will certainly start a new era of security (no transfer of personal information) and convenience (no swipe of a card) for all of us. But this new mobile payment system is not just for the ease and convenience for us consumers, retailers are utilizing this to help build awareness, drive business and increase loyalty among their consumers (ultimately driving more revenue).
Many retailers are integrating this new payment system into their existing mobile apps. Companies like Starbucks have been doing this for quite a while with their own mobile app which has resulted in an average of 6 million weekly mobile transactions (15% of all transactions occur through the mobile app).[1] So far, this mobile payment initiative has been very successful for the retailer and they are on track for the app to process over $1.5billion in payment volume in the US this year alone.[2] Driving loyalty programs has been a big part of how Starbucks has increased volume in the mobile payment area with incentivizing regular purchase through its loyalty-reward program. In order to utilize this reward program, one must have the app on their smartphone (which works with majority of smartphones). Through the app, a consumer can receive custom offers, early access to new products, easy and convenient payment of products and free drink and food rewards. Every time you use the mobile app to pay for an item at Starbucks, you earn a star towards receiving a free drink or food item. Now, they have created other opportunities with adding features such as pre-order capability and beacon offerings and alerts. Retailers can learn a lot from the mobile strategy that Starbucks has implemented and the success they have had as these retailers move forward with Apple Pay. 
So how can these retailers take advantage of Apple Pay to drive business and spread awareness? Here are a few examples:
- Use beacons – take advantage of a customer’s location
- Utilizing beacon technology allows a retailer to track the proximity of a customer and can then offer targeted mobile ads. This can work a few ways – a consumer can be reminded of coupons, reward points or offers that are saved on their smartphone in Passbook. It can also allow retailers to send out time sensitive offers and push a coupon through the notification that can then be integrated at check out. All of this helps remind the consumer of products they may not have thought about purchasing prior to walking in the door but can improve the probability of them purchasing more at checkout.
- Optimize marketing: SMS, email campaigns, etc for mobile wallets
- I woke up Wednesday morning to emails from retailers like Panera and Walgreens promoting their mobile app and its new capability of mobile payments. Both companies are diligently promoting the new payment system through digital channels of their mobile apps which are both tied to their loyalty programs. Retailers that add the “Passbook button” to their campaigns means that coupons, loyalty programs, promotional offers, etc can be integrated at checkout. If you have a good amount of quality coupons and programs, adding Passbook will be a great way to integrate your brand content into your marketing initiatives.
- Alter e-commerce experience for the user to encourage one-touch checkout
- More than anything, this new payment system is simple. One touch of my phone to the POS system and payment is made. Merchants need to make sure their sites and mobile apps are appealing and easy to navigate so that people will utilize them to do research AND purchase. In the past, I have utilized my Panera app when looking menu items, finding locations near me, and to keep track of my rewards points for offers and free food and drinks. But now I can actually pre-order my selection and pay through the app and when I arrive in the store – my order will be waiting for me in a new designated area. With Walgreens, I constantly utilize their mobile app to refill prescriptions, order photos, clip coupons to my Balance Rewards card and see what I can use my reward points for the next time I am in the store. But now, I will be able to pay via my phone as well!
No waiting in line, no swiping my credit or debit card, no receipt that I have to store away in my wallet – easy, convenient – overall a very satisfying experience for us as consumers. These types of conveniences only make me want to shop at these retailers more frequently, helping to increase my loyalty and awareness to others.
Forward-thinking and top leaders of the retail industry have already invested and made it a top priority to support this type of technology, especially in lieu of all the data breach issues that have affected many retailers.
Now that Apple Pay is up and running, what are you doing to prepare and drive more business?
[1] & [2]Source: http://www.businessinsider.com/starbucks-mobile-payments-app-2014-9
