Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Analytics and Loyalty will drive Mobile Payments Growth

OVUM COMMENT

Gilles Ubaghs, Senior Analyst, Financial Services Technology

Analytics and Loyalty will drive Mobile Payments Growth

Mobile proximity payments have to date proven lacklustre and despite hundreds of millions spent on developing these platforms, consumer take-up remains virtually non-existent. While the reasons for this are many, the application of loyalty rewards and benefits via the digital wallet is now seen by many as potentially the killer app that will help to finally ignite the long simmering mobile proximity payment market.

Ovum’s research highlights that 53% of consumers globally report they’ve either used or are interested in redeeming offers and coupons with their handsets, while 44% have used or are interested using their mobile device to pay for things in store and restaurants. Combined rewards and offers in conjunction with mobile payments are set to be a common feature in the near term as a means to reach consumers and drive spending in new ways. Already today new services such as the Coles Mobile Wallet, with FlyBuys integration and mobile payment services from the likes of Starbucks, McDonalds and others shows investment here is high and growing.

As highlighted in Ovum’s recent report, “Loyalty and Location Based Payment Services”, launching these services easier said than done as the loyalty market itself continues to undergo a disruptive evolution just as powerful as that impacting the payments space. In particular the loyalty market is rapidly becoming inundated with offers and daily deals leading to a growing need for more personalized and targeted offers to consumers to help maintain engagement levels among an increasingly fickle audience.

Achieving this from a merchant or bank perspective requires developing extensive Big Data capabilities that extend beyond just traditional top level basket transaction data, and must now include applying analytics on a range of consumer data down to location and SKU specific data. This will require greater levels of cooperation between payment providers and merchants and represents a growing market opportunity for big hitting third party loyalty and analytics vendors such as Aimia, Oracle, IBM as well as opportunities for emerging start up players.

Payment providers today already hold a rich seam of transaction data that can be and already is applied to loyalty programs. However, much of this data remains largely unstructured and the needs of modern loyalty programs remains largely ill-defined. Wallet providers who can crack this and create a broader payments loyalty ecosystem have the potential to both drive mobile wallet usage and create new consumer retail experiences beyond the POS.

---ENDS---

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news