PLEASANTON, Calif., Jan. 12, 2020 /PRNewswire/ -- Blackhawk Network CEO and President Talbott Roche will share new research on shopper preferences for payment methods and how retailers can close the physical and digital gap. Roche will present these findings at NRF 2020: Retail's Big Show in New York City on Monday, January 13.
"Mobile wallet adoption is on the rise and can generate nearly $190 billion in transaction value in the U.S. by 20211, but there is still a disconnect between digital payments and in-store point of sale," said Roche. "We have seen incredible success stories in other markets like Asia, and the global share of mobile wallet market size is projected to reach almost $3 trillion by 20222. U.S. retailers have a huge chance for engagement and for driving greater footfall in their stores by leveraging omnichannel payments experiences and better acknowledging the digital shopper. I look forward to exploring this opportunity gap with NRF attendees."
Currently, three out of five U.S. smartphone users surveyed have a mobile wallet according to Blackhawk Network research3. Yet as of October 2018, only one in two restaurants and retailers accepted mobile payments4. 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. While it would be a significant investment to implement new payment systems, many retailers realize the need to meet the demands of today's consumers who are looking for a seamless payment experience.
Blackhawk Network conducted new research5 to explore how U.S. consumers want to pay at POS to provide retailers with greater clarity on how to close the gap of digital and physical shopping experiences. Blackhawk found that the shoppers surveyed are very interested in connecting cash and digital payment methods in-store, and that having these options would increase their engagement and spend with retailers. 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%) 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.
- If shoppers were able to add funds to a digital wallet in-store, 68% of those surveyed report they would shop in the store more often than they normally would and 57% said they would spend more money at the store than they normally would.
These findings are good news for retailers; investing in new payments methods that marry cash, loyalty and digital at POS can increase shopper engagement and improve wallet share. Blackhawk Network can help retailers bring these next-generation payments methods to their stores. Known for being a pioneer in bringing together disparate payments and shopping experiences—i.e., the creation Gift Card Mall™ in grocery—Blackhawk is now a driving force innovating tomorrow's digital payment experiences. Through relationships with organizations like global financial technology company Alipay, Blackhawk is connecting digital wallets to its vast retail network by utilizing barcode payments. (These allow retailers to leapfrog the NFC structure and accept payments from a mobile phone that is connected to a prepaid wallet.) This unified branded payments experience helps retailers and marketers to build stronger customer relationships.
For more information, please check out Consumers Want Next-Generation Payment Technology or please visit Blackhawk Network at the NRF event at booth 5861, Expo Level 3.
NRF 2020: Retail's Big Show is a three-day retail event that attracts more than 38,000 retailers, vendors and industry experts. This year's focus is "finding your vision." With more than 175 sessions and 400 speakers, it's one of the world's largest retail conferences and expos.
About Blackhawk Network
Blackhawk Network delivers branded payment solutions through the prepaid products, technologies and network that connect brands and people. We collaborate with our partners to innovate, translating market trends in branded payments to increase reach, loyalty and revenue. Serving 26 countries, we reliably execute security-minded solutions worldwide. Join us as we shape the future of global branded payments.
1 "Proximity mobile payment transaction value in the United States from 2015 to 2021" was published by Statista on July 23, 2019.
2 Zion Research's "Mobile Wallet Market (NFC, Remote Wallet) for Retail payments Vending machines Public transportation, Restaurants and other application - Global Industry Perspective, Comprehensive Analysis, Size, Share, Growth, Segment, Trends and Forecast, 2016 – 2022" was published in July 2019.
3 "Retail Trends and Transformations" is an online survey conducted by Murphy Research on behalf of Blackhawk Network in Feb. 2019. The sample size included 3,381 respondents between the ages of 18 and 75.
4 "Deep Dive: Mobile Payments Uptake in the U.S." was published by PYMNTS.com in June 2019.
5 "Emerging Payments" is an online survey conducted by Leger on behalf of Blackhawk Network in Oct. 2019. The sample size included 2,219 American respondents.