Apple Pay, a likely factor in future economic boost
A recent study, published by Adobe Digital, suggests that the use of digital wallets like Apple Pay or Google Wallet will increase sale volumes as soon as this holiday season. Tamara Gaffney, head analyst at Adobe Digital Index division has noticed a 10% increase in smartphone conversion rates, when a digital payment option is available by retailers.
Online purchases take the lead, with Apple Pay pushing forward as the easiest digital wallet to configure on a mobile device. As Apple Pay’s popularity increases, physical retailers are likely to see a boost in digital checkout purchases as well.
ADI found that out of all digital purchases, 23% were made through smartphones, 19% from tablets, and 16% from desktop computers. These are promising statistics for Apple Pay as well as Google Wallet, which means, the public is welcoming the introduction of mobile payments, and consumers are becoming more aware of how much more secure digital wallets are compared to physical credit cards.
According to Tyler White, an analyst at ADI: “People are also more wary of entering their credit card information on mobile devices, they don’t feel as secure.”.
Adobe Digital Index also mentioned how digital wallets are bringing closer the digital and in-store worlds, creating a shopping experience easier, safer and more stress-free for consumers and retailers. This scenario is also creating the ideal conditions for location beacons to become relevant. As the majority of digital purchases are made on smartphones, location beacons become a precious asset, as they help provide personalized advertising to smartphone users, while in store or in the immediate proximity.
As reported by Gaffney, 71% of smartphone users seem to agree on the value of personalized ads. Out of that 71%, 20% of users would like to see better ads in regard to quality, 30% agree that ads are properly tailored to their needs, 20% seem to be put off by the intrusiveness of ads, most likely related to issue of privacy, while 29% would rather not have personalized ads at all.
While adding a secondary dimension to these statistics, ADI found that half of all respondents noticed retargeting efforts, which is a strong indicator that beacons and digital wallets are likely to boost sales and promote economic growth.