New mobile payments apps are preparing for the launch of the iPhone’s own option.
As Apple Pay is now on its way to Canadian consumers, the UGO mobile wallet is getting itself ready to deal with a market that will have a much larger amount of stiff competition to face.
The mobile wallet was created by UGO Mobile Solutions LP, with the backing of two Canadian banks.
That mobile wallet was first launched in December, and has managed to accumulate 50,000 users since that time, but it is now facing a considerable threat as Apple Pay heads out of the United States and into some additional countries around the world. Users of UGO are able to complete mobile payments transactions through the credit cards that have been issued by either Toronto Dominion Bank or President’s Choice Financial. This allows users to pay for purchases by tapping their NFC enabled smartphones against wireless terminals installed at retail checkout counters. That app also supports the loyalty cards of those retailers.
Now, UGO and other mobile wallets are getting ready to have to contend with Apple Pay, a very large entry.
UGO isn’t alone in facing the Apple mobile payments threat as it enters the Canadian space. Other local players such as Suretap – a mobile wallet created by Rogers Communications Inc, one of the largest wireless carriers in the country – is also finding itself preparing for the change in the competition.
Apple has already sent its mobile payments service into the United Kingdom and is going to take that service into a number of other countries, including Canada, before the end of the year. While many customers are interested in seeing their iPhone 6’s and 6 Plus’s in action at the checkout counter, it has yet to be known exactly how much interest there is in this market space among Canadians.
UGO is geared up to sign up as many active users as it can before the arrival of Apple Pay. Alec Morley, its chief executive officer, explained that the company is currently on track to serve 100,000 unique users by the end of the year, who will be using over 250,000 cards to pay for their purchases through this service.
Mobile wallets need to support loyalty programs to ensure success
Users of mobile wallets prefer their platforms to have loyalty rewards rather than just offering a way to make mobile payments. A new survey from CMB shows that consumers that plan to use mobile wallets in the future are more interested in the ones that are associated with loyalty programs, as such programs can offer more value to these mobile wallets. Such programs are meant to reward consumers for their loyalty to a certain brand or retailer.
Apple Pay will support loyalty cards in its next generation iteration
Recently Apple announced that the next generation of its mobile payments service, Apple Pay, will support the loyalty cards that users have. These loyalty cards are typically issued by retailers that want to ensure the highest level of customer retention. Loyalty rewards include discounts, access to special offers, and a wide range of other benefits that have come to be favored by consumers. The survey from CMB shows that consumers interested in mobile wallets, want these platforms to support loyalty programs.
44% of mobile wallet adopters want support for loyalty programs
According to the survey, 44% of potential mobile wallet adopters claimed that they wanted wallet-specific rewards programs as well as support for their existing loyalty cards. Other value added features, such as the ability to compare prices on a single platform, are less interesting to consumers that want to participate in mobile payments. Apple adding loyalty card support to Apple Pay may make this mobile payments service much more attractive than its competitors.
Mobile wallets offer convenient services that have become favored among consumers
Mobile wallets serve many functions, from being able to store digital information provided by retailers to facilitating mobile payments. These platforms have become quite popular with consumers because of their convenient nature, but those interested in mobile wallets are beginning to expect much more from these platforms that simple support for mobile payments. As such, mobile wallets that offer the best services have established a strong position with consumers.
