Shoppers want to use their mobile wallets to shop in stores, but retailers with brick-and-mortar locations are slow to catch on and deploy appropriate technology to make that possible. This according to new research from Blackhawk Network released last week at the National Retail Federation’s annual convention in New York.
“Mobile wallet adoption is on the rise and will generate nearly $190 billion in transaction value in the U.S. by 2021 but there is still a disconnect between digital payments and in-store point of sale,” said Blackhawk’s CEO and President Talbott Roche.
The research notes that three out of five U.S. smartphone users have a mobile wallet. But stores and restaurants have yet to catch up and service buyers who want to use the technology to pay for purchases. As of October 2018, only one in two restaurants and retailers accepted mobile payments
“Mobile wallet adoption is on the rise and will generate nearly $190 billion in transaction value in the U.S. by 2021 but there is still a disconnect between digital payments and in-store point of sale”
“In-store use of mobile wallets has seen slower adoption in the U.S. versus other parts of the world, largely due to the legacy hardware and traditional check-lane terminals many retailers are still using,” said Blackhawk in a statement.
A missed opportunity to earn more
The study points to a missed chance to gain additional revenue. Surveyed shoppers said if they were able to add funds to a digital wallet in-store, 68 percent would shop in the store more often than they normally would and 57 percent said they would spend more money at the store than they normally would.
Other findings include:
- Six in 10 shoppers surveyed said they would like to pay for things in-store by using points they’ve earned in their loyalty programs, using their smartphones.
- Nearly half of shoppers (47 percent) surveyed report that they would be more likely to join a loyalty program if they could use their points to pay for things.
- Seven in 10 shoppers surveyed said they are interested in adding cash to an app or digital wallet, such as iTunes, Netflix, Amazon, Uber, and PayPal while in-store.