Before the start of the pandemic, using your mobile as a payment method was already increasing exponentially. In the United States alone, mobile payments are projected to reach $161 billion by 2021. Globally, the mobile payment market reached over $3 billion in 2019 and is expected to grow to $12 billion by 2024. These figures appear to be an underestimate, now that the move to cashless transactions is accelerating, as a result of Covid-19.
Whilst Apple Pay, Google Pay and Samsung Pay may seem like the big players in the market – one of the most incredible success stories in the world has been Starbucks.
Starbucks only got overtaken in the United States by Apple Pay in 2019 as the most popular mobile payment app. This is an incredible achievement for any brand – especially as the Starbucks app can only be used in their own stores. So what can be learnt from their success?
1. Mobile payment solutions are not the same – choose wisely
At Tappit, we help organisations choose the right cashless and contactless solutions for their audience. For businesses who want to replicate the Starbucks success story, the good news is that it can be quick and easy. By choosing a white-label mobile pay solution, businesses can create a seamless in-app experience, understand every customer and build loyalty and incentivise their consumers to make even more purchases. The even better news is that your app doesn’t need a major overhaul – the solution simply integrates and works within your existing app.
2. Don’t miss out on the valuable data
When you choose a white-label mobile pay solution – it is your business who benefits. Your business gets the data and insights which enable a full understanding of who your customers are, when and what they purchase. You can even combine other data sets to get an even more detailed picture of your consumers. Contrast with Apple, Google and Samsung pay systems, where you gain no further understanding of your customers.
3. Incentivise your customers with rewards, and loyalty discounts
A major factor of Starbucks’ success is down to its ability to combine payments and its loyalty program. The mobile payment app for Starbucks is an extension of its retail experience and there is a clear return for customers. Customers get loyalty points, coupons and perks like mobile ordering. Aside from some savings, customers get time savings. The focus on its own transactions meant Starbucks didn’t have to cut multiple partnerships just to get rolling.
Contrast with Apple, Google and Samsung pay systems: The apps really don’t save you much time and it’s unclear how the customer benefits.
4. Mobile pay should be woven into a wider strategy
Starbucks’ mobile plans were mixed in with the company’s in-store experience as well as a broader digital effort. That ability to tie together systems and rewards bolstered the company’s success.
Contrast with the other mobile pay leaders: Google, Apple and Samsung have broader strategies, their mobile pay efforts are more about services revenue and keeping customers on their platforms. The mobile payment app integration with the broader platforms isn’t clear.
5. Starbucks consumers had a real choice
The Starbucks app isn’t preinstalled on phones so its market lead is based on real usage and customer preference, not on manufacturing.
And the great news is that any organisation with vision and focus can have their own, in app mobile pay solution. At Tappit, we work closely with our clients to ensure the integration, roll out and consumer marketing is efficient, improves the customer experience and most importantly improves your business’ bottom line.
If you’d like to know more about how we could help your organisation become the star and earn more bucks – we’d love to hear from you. Get in touch!