Innovation in mobile wallet based loyalty programs expected to drive growth

Analyst View Point Series

Table of Contents

Market Context

Key Insights

Market Context

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.

Key Insights

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.

Key Insights

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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