One third of the online purchases are made with mobile and with the introduction of passbook and apple pay these numbers are more likely to increase which means retail marketing is about to change so marketers need to act fast and grow alongside the new “apple pay” initiative. According to a recent research report, online retail spending grew by 14 percent in 2013. Apple’s passbook is doing a great job of making its case with big-name retailers. You may hear about the new mobile payments services which called Apple Pay. With the help of apple pay, users will swipe their iPhones or apple watches which can be preloaded with customers’ debit and credit cards by using the Passbeemedia Apple Ibeacon application. There is a big problem while accepting apple pay as many customers are ready to embrace the new mobile payments services but most retailers are not yet accept apple pay due to lack of technology.
CEO of the Apple Inc. announcement that only 220,000 stores will work with apple pay, that’s about 2.4% roughly 7 to 9 million merchant in U.S.A that accept credit/ debit cards while remaining 97.6% of businessmen do not have near field communication (NFC) technology. The apple pay is relies on NFC technology. But many retail partners will accept apple payments today or in near future include babies R Us, Aeropostale, BJ’s wholesale Club, Bloomingdales, Chevron, Champs, Duane Reade, Foot Locker, lady foot locker, kids foot locker, Footaction, Macy’s Nike, office depot, Petco, RadioShack, sports authority, Six: 02, Texaco, Toys R Us, Walgreensand apple’s own retail stores. Many fast food restaurants also accepting apple pay include McDonald, Subway, Panera bread, as well as many grocery stores are also accepting the mobile payments services include Wegmans and Whole Food Market.
There are some reasons that apple passbook is growing on retailers:
- Users are starting to understand passbook: it is not easy to figure out that how to use apple passbook at first. But after few months, it made some important changes. Cash-Star is a feature of passbook which makes several big name brand retailers including Starbucks, Dunkin Donuts, Sephora, William-Sonoma, Gap, Best Buy and many others. Nearly 10 months ago, apple passbook launch Cash-Star to released data claiming that about one-third of all digital gift cards that are opened on a smartphone and are sent to someone. After that 30% of the users are actually added to passbook app.
- People are intending to spend money in passbook: due to the Cash-Star “millions of dollars” in gift cards have been added in passbook since it debuted.
- Location-based reminders: if the retailers forgotten or lost gift cards then they need not worry because they can recognize revenue from gift cards when they are redeemed. After that location-based alerts build into Passbook. Retailers like these location-based reminders as it brings customers in-stores. If added digital gifts cards in passbook with reminders will actually increasing the redemption velocity even more.
- Training customers for true digital payments: customers use cards like money as a lot of gift cards are added to passbook.