Grabbing a credit or debit card to make a purchase online or in a store has become second nature for most people. Connected to a trusted bank or financial institution, card transactions are relied upon to secure financial information while offering the convenience of broad merchant acceptance. So far, mobile wallet adoption has been slow, and this could be due in part to wary consumers who are looking to banks they trust to take the lead on this new technology. But now isn’t the time to “wait and see”. Now is the time to define your strategy and move forward – remembering to avoid these 5 mistakes along the way.
According to Javelin Research, consumers are more apt to trust their banks with their financial data, including mobile wallets, than they are to trust other organizations like Facebook, Amazon, PayPal, Apple and Google. These “big five” have an opportunity to rise to the level of trust financial institutions enjoy, but so far have not done so. Act on this advantage now, understanding that it is probably temporary.
Once you’ve defined your strategy, implementation will take 7-12 months, and a lot can happen in that time. Recent technology adoption trends suggest rapid mobile wallet adoption once the technology gains a foothold. Don’t come late to the game and risk losing customers to the “big five” or other mobile wallet players who will gain consumer trust over time.
Mobile wallets will be about more than payments. And they will certainly be about more than your institution and its services. Choice and convenience are critical to the success of your program. Your mobile wallet should have the flexibility to support a variety of products and allow your customers to add “app-like” modules for their favorite merchants, banks, credit accounts and more. If you don’t do it, others will. As a financial institution, you still have the edge when it comes to trust, but ignoring consumer demand for choice will put you at an ultimate disadvantage.
While mobile wallets may be the next big thing, their usage will likely overlap plastic cards – not overtake them. As an additional way to strengthen and maintain customer relationships with added choice convenience, consider offering instant card issuance. Let your customers choose from a variety of card background images – or add their own. A unique, personalized card can go a long way toward gaining top-of-wallet status.
Choosing a capable technology partner you will help you avoid this pitfall. You don’t have to risk committing to an enabling technology up front. Acting quickly and decisively is essential, but that doesn’t mean you should lose your flexibility to respond to future consumer demands and technology trends. When building your mCommerce Roadmap, remember your choice of technology partner could make or break your implementation. Choose wisely.