Half of UK shoppers (50 per cent) say they no longer need a physical wallet or purse, swapping it for a digital wallet on their phone. That’s according to new research from omnichannel customer engagement platform SAP Emarsys to mark the launch of its mobile wallet.
The study of 2,003 UK consumers suggests that the adoption of the mobile wallet is a generational change in the UK, with 67 per cent of shoppers who make purchases via their mobile wallet aged 18-24 comfortable without a physical wallet compared to just 37 per cent of those over 45. This generational difference appears to be driven by the loyalty benefits offered by mobile wallets, with 93 per cent of consumers using a mobile wallet-based loyalty programme.
Key cited benefits for those who purchase items using digital discounts or coupons include keeping discount codes organised (25 per cent); the speed of purchase compared to paper counterparts (31 per cent); and the ease with which you can check your savings (32 per cent).
With almost two thirds (65 per cent) of consumers actively comfortable using digital coupons/vouchers, and 64 per cent for digital loyalty cards, these benefits are likely to become expectations as the technology continues to grow in adoption. Just 9 per cent said they were uncomfortable using digital coupons and vouchers, and 10 per cent respectively said that they were uncomfortable using digital loyalty cards.
For those that don’t yet use mobile loyalty cards, the #1 reason is that they aren’t loyal enough to any one brand to justify adopting them. With previous research from Emarsys finding the cost-of-living crisis saw 56 per cent of consumers switch from a brand they were loyal to save money and 19 per cent of consumers feel they could “no longer afford to be loyal”, so brands need to find the ‘value exchange’ that motivates customers to commit to a brand in that sense again.
“Today’s savvy consumers won’t tolerate poor experiences or rewards that miss the mark. Earning their loyalty means deeply understanding what each individual values and delivering it at precisely the right time on the channel they prefer,” said Kelsey Jones, global head of product marketing at SAP Emarsys. “Our new mobile wallet functionality lets marketers uplevel their brand promise, giving them more ways to deliver the personalised, seamless experiences their customers expect.”
“Imagine checking out at your favourite store and simply pulling up your iPhone to pay with Apple Pay and there waiting for you in the palm of your hand, are the exact coupons and loyalty card you need in one place,” Jones said. “SAP Emarsys mobile wallet makes this experience convenient and easy for marketers to implement and optimise, so the customer has the best possible shopping experience.”
SAP Emarsys customer, popular surf and streetwear store, City Beach has embraced mobile wallet. Customer lifecycle manager James Neill added, “Mobile is the one channel that’s always with the customer, so it is integral to our omnichannel approach. Mobile Wallet opens our reach to different age groups, which unlocks a whole new set of use cases to better connect our digital and in-store experiences. The inclusion of a digitalised wallet has expanded customer loyalty by personalising products and shopping experiences across generations. The result? Customers can stay loyal to their favorite brands wherever they’re at.”