Contactless payments are the next big thing in spending, with not just Apple, but Google and Barclays also currently creating their own contactless payment technologies. And although this type of technology has obvious benefits for the retail sector, which have been widely deliberated recently, not much has been discussed about how other industries can benefit.
Here is my advice on how the events sector and other industries can adopt Apple Pay, too:
Released in the UK on July 14, Apple Pay is the brand's latest technology which helps customers spend in-store and online using just their iPhone, iPad, or iWatch. It takes seconds, and with the UK Cards Association announcing this year that payments on contactless cards almost trebled in 2014, it’s likely that these kinds of payment methods are to become the future of spending. In fact, this way of paying has become so popular that the limit has just been upped to £30.
How the events industry can benefit from Apple Pay
One of the sectors that is currently exploring the ways that Apple Pay can benefit it is the events industry. The events sector notoriously has issues with payments - from running the risks associated with collecting cash on the door of events, to the downfalls connected with having a backlog of payments waiting to come through post-event. These problems aren’t only difficult in terms of a business' cash flow, but the ability to collect customer data with so many different methods of payment also becomes near impossible.
But with Apple Pay, these channels can be connected, easing cash flow, and enabling event organisers to collect customer data across platforms. And many have been adopting new apps with the Apple Pay function for these reasons already.
Apple Pay and customer data
Not just beneficial for the events industry, but generally for all brands with a digital marketing strategy, Apple Pay is a phenomenon that could become extremely valuable when it comes to collecting customer data.
During the launch of Apple Pay, Apple announced that it won’t be collecting data itself through this new technology, and customer data will solely be shared between the customer, merchant, and bank. This is great news for brands as it helps with collecting vast amounts of customer data across channels, such as online and in-store – something that is renowned in digital marketing at the moment as a difficult task. Brands can then build a customer profile based on spending habits that will then be integrated into marketing strategies, particularly useful for personalisation.
Although there is the issue of only iPhone 6, iPhone 6 Plus, iPad Air 2, iPad mini 3, and iWatch users being able to purchase with this new technology, research has found that with strong sales of the iPhone 6, Apple has increased its share of the UK smartphone market to 42.5 per cent, and this is on the up, so it’s time for digital marketers to be clued up on what this could mean for their strategies.
How Apple Pay can be used as a digital marketing tool
Not only can Apple Pay be handy in terms of collecting customer data, there are other elements that many might not even realise can be optimised for digital marketing.
E-receipts
Consumers that adopt digital payments are more likely to be receptive to a digital proof of purchase, which offers a great opportunity to engage with customers after they have bought a product or service. With e-receipts, up 20 per cent of the space on the receipt can be used for promotional content - from plugging social media channels to promoting offers and exclusives, it’s a simple way to engage with a consumer after the initial interaction.
Passbook
As Apple makes moves to take the place of the traditional wallet, the Passbook app will be replaced by a new app named Wallet, where consumers can enter all of the credit and debit card details they wish, and have the information stored in one place. Although one card needs to be selected as the default card for payments, all of the cards stored within the app can be used at the checkout. The improved app also paves the way for a new loyalty programme on smartphones. Users can link their bank and loyalty cards on their Smartphone, which helps brands further when it comes to collecting customer data, and saves customers carrying around multiple bank cards.
Easing the in-app purchase process
iOS developers have already seen the checkout rates more than double for applications that have the Apple Pay option available, as Apple has simplified the in-app purchasing process to allow users to spend simply with their fingertip. This is great for improving user experience (UX) on mobile, which can only be a good thing for conversions. And if customers know they can pay for a product or service from an app on their phone, and fast, they will be more likely to download the app. The app can then provide another channel through which they can then be reached with marketing messages.
Overall, Apple Pay is another step into the future of contactless payments becoming the prominent method of payment. If brands don’t adopt these methods, and fast, it won’t be long before competitors that are optimising these channels to boost their digital marketing strategies are overtaking those that aren’t making the most of this new technology. This is the same no matter what the industry, especially if, like Apple Pay, the technology can integrated into the marketing mix – many different industries can use it to their advantage.
By Ben Sebborn, technical director at Skiddle.
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