Global mobile payment market is expected to record a CAGR of 34.0% from 2017-2021 to reach US$ 14.1 trillion in transaction value terms by 2021, increasing from US$ 4.4 trillion in 2017. In 2016, the market registered a growth rate of 41.6% over 2015, to reach US$ 3.1 trillion.
Mobile wallets have been posting strong growth across key developed and emerging markets globally. Increasingly, mobile wallet has become an important channel for accessing and utilizing loyalty programs. PayNXT360’s Q4 2016 Global Consumer Survey reveals that over 73% customers have expressed their interest towards using mobile wallets more often if they have a chance to earn and redeem loyalty points through mobile wallet transactions. This opens up new prospects for business expansion and increase in customer adoption for mobile wallets.
Though innovation in mobile based loyalty programs has increased in recent quarters, it hasn’t still reached the desired level to meet consumer expectations. Majority of the consumers would like to earn loyalty points while making daily purchases and redeem loyalty points through mobile wallet. Owing to this customer preference, Stocard has recently announced the launch of a new mobile payment function in 2017 in Australian market. It also provides the facility of storing all customer loyalty cards in one platform. With addition of mobile payment feature, Stocard will provide end to end solution for customers in online purchase process. Other wallets providing similar services include Key Ring and CardStar in Canada.
Integrating multiple loyalty cards into single mobile wallet is expected to drive growth and offer cross-selling opportunities, leading to improved customer engagement and adoption levels for mobile wallets across markets. PayNXT360 expects rate of innovation in mobile based loyalty cards to intensify over the course of next 6-8 quarters.
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