Mobile wallets key drivers of coupon, loyalty program use

More than two-thirds of Millennials have used a mobile wallet in the last three months, more than those who are 35 to 54 years old, found Urban Airship's research among consumers in the U.S. and U.K. And, those with higher household incomes use them more than those with low.

However, while those age and wealth statistics are expected, Urban Airship also found that the adoption of mobile wallets depends on another factor - it depends on what else in in your wallet.

According to Judy Chan, senior product marketing manager at ‎Urban Airship, "nearly three-quarters of consumers will use mobile payments if loyalty rewards and offers are automatically applied".

The important take-out here is "automatically applied". Urban Airship's research found that more than four in 10 consumers "always" or "often" forget to bring printed coupons to a store while nearly half (48%) "always" or "often" let coupons expire or go unused.

However, mobile wallet notifications of expiration would mean 64% would be more likely to use the coupon, plus those reminders drive in-store traffic. Three-quarters (67%) of U.S. and 58% of U.K.. respondents said they are likely to visit a store if they are nearby and receive a coupon expiration reminder.

And, it's not just coupon use that mobile wallets benefits. The same is true of loyalty program participation, found Urban Airship. Many consumers forget to bring a loyalty card to a store (43%), or even forget they are part of the loyalty program (40%), yet 69% would be more likely to use their loyalty card if it was on their mobile phone. Even more, 73%, would be more likely to join a loyalty program if rewards and points are automatically and immediately visible on mobile wallet loyalty cards.

"When paying with your phone means never forgetting a coupon, missing out on rewards, or fumbling at the register, it provides consumers with a compelling reason to go all-in on mobile payments," said Chan.

Download Urban Airship's 'State of Mobile Wallet Marketing' report here.

Tags: loyalty and rewards, mobile payments, mobile wallet, payment technology