Android Pay,Subscription business model,Business intelligence,Loyalty program,Samsung,Reward system,Adoption

Samsung Pay shows how rewards can boost adoption

January 9, 2017

BI Intelligence This story was delivered to BI Intelligence "Payments Briefing" subscribers. To learn more and subscribe, please click here. In November, Samsung Pay launched Samsung Rewards, a wallet-specific loyalty program that rewards users proportionally for how often they spend on the wallet. At the Consumer Electronics Show (CES) this week, Samsung Pay executive Nana Murugesan announced that it’s seen meaningful gains in usage since launching Samsung Rewards, pointing to the impact that loyalty and rewards integration can have on mobile wallet adoption and usage. Since launching the rewards program, the wallet has seen a “surge” in monthly active users. Those users are paying more frequently. Samsung Pay’s average number of daily transactions has nearly doubled, and the firm set a new record for daily transactions in December, according to Murugesan. Even more, the number of “power users,” a group that uses the wallet roughly once a day, more than doubles every week. Samsung Pay’s growth is an example of why integrating wallet-specific loyalty and rewards offerings could be key to catalyzing wallet growth. Users want rewards, loyalty, and incentives in their wallets. Among existing wallet users, mobile rewards and loyalty offerings are in demand. But Samsung Rewards is wallet-specific, rather than retailer-connected, which could give it a leg up on acquiring new users. That’s because 44% of likely US mobile wallet adopters would test the service if given access to a wallet-specific rewards program. Samsung Pay’s major gains since introducing Samsung Rewards indicate that users want these features in practice as much as they do in theory, and could help the product overcome adoption hurdles that have been plaguing wallets across the industry....

Read the full article here