What would it take for you to stop Credit Card swiping and start Paying with your Phone?
What would it take to Pay with your Phone?
We were speaking to a number of people yesterday on why they hadn’t used Apple Pay on their iPhone yet. The overwhelming consensus was that the Merchant didn’t give them anything for using the phone, so why bother? Swiping was just too easy! One guy said I’ve had Google Wallet with the Tap to Pay feature for 2 1/2 years and don’t use it, because I don’t get anything to use it.
Most customers don’t think about it, but merchants pay for the Rewards those credit card companies provide them. It’s not the credit card companies paying the rewards, it’s the Merchants visited by that customer. So if your card pays you 1% back, then every time you use that card at a merchant they typically pay that 1% plus their usual fee of 2-4%. It’s difficult for merchants to pay an additional figure just to get customer’s to use their phone. Afterall what’s the merchant getting? They don’t get anything either.
So along comes Payyus, where the merchant can offer Cash Loyalty Rewards to their customers for Paying with their Phone. The more the customer pays with their phone the more Rewards they are entitled to from that merchant. The beauty of this is that the Customer get’s Rewards from favorite places for paying with their phone and the Merchant is assured of Customer’s returning to cash in their Rewards.
So the question is: Would you pull out your phone and use Payyus at your favorite retailer or restaurant if you were given Rewards each time you visited that Merchant? And what percentage rewards would get you to go back to what Merchants? For example, Starbucks gives a free drink with around every 12 purchased. That’s about an 8% reward. That’s much better than that 2% on your credit card, so is coffee worth that? What about women’s shoes? Would you go back for 5% or is it a 10% kind of purchase?
Let us know in your opinion what it would take to stop swiping and start paying with your phone. You can reach us at @mympartners or rlee[at]mymarketpartners[dot]com.