When it Comes to Mobile Payments, an Omnichannel Strategy is Best

It’s been four years since Apple launched Apple Pay, which together with Google Pay and Samsung Pay have ushered in the modern era of mobile payments. These “pays” have been joined by mobile payment solutions from retailers like Starbucks and Walmart, and together with P2P apps that can be used at the point of sale like Venmo and Square’s Cash App, mobile payments in 2018 are increasing market share.

With merchant acceptance of EMV chip cards now at about 2/3 of retail locations and growing quickly, card networks and issuers are focused on increasing contactless card issuance and merchant acceptance of contactless transactions. ETA projects that tens of millions of contactless cards will be in the U.S. market this year, and that number will increase significantly in 2019. And merchants should encourage their customers to try contactless because of the immediate benefits: faster check-out times, more secure transactions, and more connections to data-driven offerings.

For merchants to reap the full benefits of the modern mobile payments ecosystem, their payments strategy can go beyond accepting a contactless tap-and-go card and encourage use of smartphone payments at the point-of-sale. The true value of mobile payments comes from the marketing value of an omnichannel approach. Take mobile order-ahead as an example. Six in ten American consumers between 25-34 years of age have used a restaurant or coffee shop mobile order-ahead service, and two in three Americans report choosing a restaurant specifically because it offers order-ahead. These services are growing quickly, and merchants that accept order-ahead mobile payments can engage new customers searching for dining options via their smartphones.