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Why Loyalty Program is Mobile Wallet's Primary Currency?

By: Banking CIO Outlook | Wednesday, January 08, 2020

As customer trust in digital wallets increases, and their use becomes more widespread, banks should consider updating them with loyalty reward programs.

FREMONT, CA: Digital wallets are emerging intending to transform the traditional branch-based banking during the years ahead. Digital wallet ecosystems are revolutionizing the delivery of banking products and services at scale. As customer convenience continues to be a hotly-contested topic, banks are seeking out ways to fuel digital wallet adoption. Loyalty points play a starring role in increasing the adoption of mobile wallets.

Paying through earned points paves a way to drive customers towards using mobile wallets. Customers who have never conducted mobile transactions before often worry about the security present on their smartphones. According to studies, security is the primary concern for many individuals not to use mobile wallets. This indicates that banks must offer an added incentive to drive up mobile wallet usage and adoption rates, the place where loyalty steps in. The fact that consumers do not need to input personal card information to participate in the loyalty program is an attractive factor for customers. This suggests that consumers find loyalty points to be a secure way to pay.

Check out : Top Loyalty Management Solution Companies

While mobile-savvy customers with worries regarding security will continue to use digital wallets, banks see it paramount to consider the best ways to drive adoption among them. Providing relevant value and utility within mobile wallets is the most effective way that banks use for gaining users. This tactic is fueling more mobile banking service requests. Banks can also steer branding with digital-wallet linked rewards, using visual branding programs and personalized messaging to ensure that customers associate the loyalty redemption event with banks.

If banks can provide a seamless, relevant, and personalized digital rewards experience, customers will be more likely to associate with digital wallets. As the momentum accelerates and use of digital wallet become universal, digital-forward banks can substantially increase loyalty-program use, attract customers who represent future growth and strengthen their brands.

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