Group :4 Badal Chaudhary--2011462 Bavleen Kaur-2011250 Hrishita Singh-2011507 Latasha Tanwar-2011284 Madhu Sudan Chhangani-2011235 Shalini Gupta-2011469 Swati Bajpai-2011007 Future of mobile payments and its potential for marketers Source: Shutterstock.com INTRODUCTION Mobile Payments Mobile Marketing Enable mobile phone as a payment device Expand retail commerce & consumer marketing solutions Mobile as NFC Device Mobile as payment P2P Payment SMS-based transfers Mobile as NFC Device Mobile as payment P2P Payment SMS-based transfers Revolving loans (Bill me later) Mobile Banking Leverage mobile as new and enhanced channel for banking service Mobile as NFC Device Mobile as payment P2P Payment SMS-based transfers Source: Mckinsey Mobile Payments is voted by 50% respondents as most significant consumer behaviours made possible by mobile. EVOLUTION OF MOBILE PAYMENTS History Reduce merchant’s expenses Improve the customer experience & convivence Existing Future Get customer insights & induce push strategy Leveraging spending habits for targeted marketing Integrates loyalty programs Emergence of easy yet secure payment gateways TYPES OF MOBILE PAYMENTS Mobile Wallets Quick response (QR) code payments Options Contactless mobile payments Eg- NFC Mobile Banking Unified Payments Interface Buy now pay later Most dominant usage is with Mobile Wallets and UPI Payments PAYMENT INNOVATIONS TARGET EACH COMPONENT OF THE RETAIL EXPERIENCE Awareness Consideration Transaction Retention & Advocacy Coupon provided by mpayment can be highly effective for branding Nudges towards exploring the brand in every next purchase M-wallets discourage consumers to deliberate their spending behavior Increases switching cost for customer by providing loyalty points 90% of consumers use coupons Digital coupon redemptions to surpass $90 billion by 2022 63% of shoppers say they want coupons to be more available 54% of consumers engaged in a loyalty program reported spending more INTEGRATION OF MOBILE PAYMENTS INTO CONSUMER MARKETING STRATEGY CONVENIENCE OF M-PAYMENTS TURNING INTO DEEPLY INGRAINED CONSUMER HABIT Think mobile start to end - Mobile capabilities extend throughout the customer lifecycle, from finding a product through mobile search and ads, to learning about it through different channels like social media, website, etc., deciding to buy it and finally purchasing it Simplify user journey - Mobile payments have make customer journey seamless, allowing them to complete the transaction much faster than with a credit/debit card CONVENIENCE OF M-PAYMENTS TURNING INTO DEEPLY INGRAINED CONSUMER HABIT Watch out for fraud – Mobile payments need to be trustworthy; companies should authenticate mobile transactions, track fraudulent activities, and report suspicious activity to the authorities Track behavior and transform it into action – With mobile payments, you can collect & analyze data to understand how often consumers are purchasing from you and when - time, day of the week, season, etc.; dig into data frequently to see what the best-selling products are in a certain period, whether a promotional activity is actually generating purchases and how to improve your services Personalised targeting and completion in one go - Push out text messages or customized push notifications to encourage purchase, personalize follow-up messages and track response Human touch augmented with mobile payments – After conversation with customer executive to solve customer queries, users can be sent payment links, to complete the purchase FOCUS ON CUSTOMER RETENTION BY OFFERING EXCLUSIVE PRIVILEGES Use Mobile Payment for Customer Loyalty - Run loyalty campaigns, such as loading points to the customer’s account whenever they make a purchase, and offer rewards and discounts to increase customer retention and loyalty OFFERING A VARIETY OF PAYMENT METHODS TO CATER TO ALL KINDS OF USERS PARTNERING WITH DIGITAL PAYMENT COMPANIES/WALLETS TO SELL GIFT CARDS OFFERING LUCRATIVE DISCOUNTS TO PEOPLE ON DIFFERENT M-PAYMENT METHODS EMPHASIZE ON COMMUNICATING BENEFITS OF MOBILE PAYMENTS CLEARLY EXTENSIVE ADVERTISING OFFERS ON MOBILE PAYMENTS IN MARKETING CAMPAIGNS EMPHASIZE ON COMMUNICATING BENEFITS OF MOBILE PAYMENTS CLEARLY WHAT DOES THE FUTURE HOLDS FOR M-PAYMENTS? UPI would have a larger role to play Emerging Trends Account Aggregator Policy by RBI Access to UPI, GST and other non-traditional payments data made easy through AA Policy Source: Ken Research Implications for Marketers UPI outshines card payments – UPI has surpassed the card payments both in terms of volume and value of transactions. The phenomenal growth would have long lasting impact on business models of payment giants like Visa and Mastercard. Nano targeting of suitable customers would become possible on the back of UPI. Vast amount of data on specific spending habits to be utilized for targeted promotional campaigns. Short-lived mobile wallets – Paytm, Mobikwik etc. shifting away from mobile wallet model. Newly found focus on mining payment data Revenue dip for payments banks – Ability to monetize transactions has been hindered by the prevalence of freely available options like UPI and NEFT etc. Disruption in monetization avenues for marketers as well as payment apps. Data mining and expenditure analytics to become major source of revenues. Payment gateways are big winners – Gateways like PayU, BillDesk have seen spike in revenue by 2.5X to 5X Drastic improvement in conversion factors. With a customer quilt built on the base of multiple data sources (Payment + Social), ultra specific targeting would yield better results Plausible disruption by Central Bank Digital Currency (CBDC) Emerging Trends Launch of Digital Rupee India is gearing towards the trial of digital rupee, an RBI backed cryptocurrency Source: Bank of England Legal blockchain based tender – stable cryptocurrency backed by central bank, CBDC would have transparency and efficiency of blockchain Addressing volatility – Government backed cryptocurrencies would not only deal with the inherent volatility but also phase out the dubious cryptocurrencies operating outside of the conventional financial structures Mitigating reliance on cash – Consistent need to print new money would reduce and reduction in dependency on cash would legitimize the economy and loop a large chunk of transactions through traceable mediums Challenging the dollar dominance – Country backed cryptocurrencies would significantly reduce the reliance on dollar-based currency exchanges Implications for Marketers Scams & frauds surrounding digital payments are major deterrents for marketers. A decentralized and encrypted CBDC would ensure secure transactions for common public CBDCs could be used for faster cross-border remittance payments. Thus, opening the world market in true sense for millions of Indian citizens. Numerous implications on retail transactions. With proposed offline accessibility, digital rupee would augment the scale of digital payments and broaden the target audience for marketers THANK YOU!
