Introducing incentives to facilitate customer behavioral changes to use mobile wallets have been suggested by industry analysts for some time, and have registered varied response. For some time it has appeared the providers of the major universal mobile wallets (Apple Pay, Android Pay, and Samsung Pay) were content with the organic adoption and utilization rates already underway. In this article, Samsung has found a special angle for its awards program.
The addition of rewards to Samsung Pay also presents a somewhat unique opportunity for those who only carry debit cards. In most cases, debit cards in the U.S. do not offer any sort of rewards or benefits. By registering them and using them with Samsung Pay, debit card holders now have a way to earn rewards for purchases made with that card.
Mercator Advisory Group believes Samsung is making this move in part to bolster its own share of the market, which may have been hampered by the global recall of its latest mobile phone offering. For those of us that have favored the idea of debit spending, the ability to be rewarded for doing so will likely be welcomed. While it may do little in the immediate term to recapture its mobile device presence, it will likely work as an incentive for existing Samsung customers in possession of a Samsung Pay enabled to device to stick with the brand as the holiday device refresh season opens in order to continue earning points. How successfully it will perform to that end remains to be seen. Further, how the rewards program is extended into CNP Mobile transactions will be interesting as well.
Overview by Joseph Walent, Associate Director, Customer Interaction Advisory Service at Mercator Advisory Group
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