Loyalty programs in mobile wallets are critical to gain market share; FIS launches integrated mobile payment platform BuyWay

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Mobile wallets are increasingly popular mode of mobile payment in the US. However, there is a sizable segment of consumers who are reluctant towards mobile wallet usage due to a number of reasons including security and complexity. In order to reach out to this segment, there are certain measures which are being considered by many players. Integrated loyalty programs are one of the popular choices towards increasing usage of mobile wallets as expressed by 77% consumers in PayNXT360’s global consumer survey.

Loyalty programs are already popular in the US. Mobile wallet service providers now plan to use this consumer trend to increase adoption rate among customers. This form of incentive where a customer can earn points from purchases or bill payments through mobile wallets and well as redeem those points at checkout conveniently is likely to increase usage of mobile wallets. Popular wallets such as Apple Pay, Samsung Pay and Android Pay have already partnered with several retailers for incorporation of this system. Around 88% consumers have stated that they would use mobile wallet for transactions if they are facilitated with loyalty programs. This opens up a huge prospect for increasing customer base and transaction volume for wallet players.

The US mobile payment market is expected post robust growth. According to PayNXT360, The US mobile payment market is expected to record a CAGR of 46.9% from 2016-2020 to reach US$ 727 billion in transaction value terms by 2020, increasing from US$ 155 billion in 2016. In 2015, the market registered a growth rate of 68.5% over 2014, to reach US$ 95 billion. As a result, competition in the integrated mobile payment space is expected to intensify.

Financial services technology leader FIS launched BuyWay, which is an integrated mobile payment platform. The platform connects all applications of consumer smartphone to merchant POS terminal through cloud based technology. Through this platform, payment functionality is added to merchant apps, speeds up checkout process by removing physical contact with POS terminals and increases secured transaction as no consumer sensitive data is passed through POS.

BuyWay has also opened up the prospect for integration of loyalty programs featuring instant rewards. Currently, it has been deployed at many convenient stores and gas stations. The company plans to extend services across other market segments such as restaurants, unattended kiosks and parking garages.

BuyWay is providing a faster payment process for both merchants and consumers which are beneficial at both ends. Retailers will benefit from add on payment technology to their existing platform and even connect their loyalty programs in long run. This is an essential step towards driving customer engagement and sales in a positive direction. Mobile payments are popular choice for going cashless for large section of consumers and merchants.

To know more and gain deeper understanding of mobile payment industry in the United States, click here.