Mobile wallets have been around for years now, and industry experts have called them The Next Big Thing in payments for their entire existence. But adoption rates have never quite matched up to the enthusiasm and excitement—while mobile wallet share is increasing month to month, it's still dwarfed by physical card transactions.
Of course, no one is giving up on mobile wallets just yet. The question remains: Is there still a tipping point ahead?
Can loyalty programs help mobile wallets grow?
To see a massive boost in use, mobile wallets need to be more appealing both to customers and merchants. It's not merely a matter of simpler technology, because mobile wallet developers have been working diligently to make the technology as friction-free as possible. It's also a question of benefit.
Both consumers and merchants need to see a bigger benefit in using the tech more often. Now, as mobile wallets begin to include more loyalty capabilities tied in with offers and rewards, many are wondering if this could be an area of mutual excitement for both consumers and merchants—one that could lead to fast growth in use.