Visa/Dunkin Donuts, Apple/Square Offer Incentives to Get People Using Mobile Payments
Mobile pay is generally seen as years away from becoming mainstream. But the rollout of various smartphone transaction tools and deals is speeding that process up.
The Visa Checkout mobile payment system that is linked to the brand’s credit card is being folded into the Dunkin’ Donuts app. In a co-branded campaign with the credit card issuer, Dunkin’ Donuts is offering a $10 bonus to anyone who loads at least $25 onto a new or existing DD store card using Visa Checkout.
The campaign, dubbed “Get Stuff Dunkin’,” marks the first collaboration between the two companies and will feature short comedic videos starring Community’s Joel McHale in a “crusade against wasted time.”
“Visa Checkout is designed to do exactly that – simplify people’s lives by making the point of purchase experience seamless,” said Sam Shrauger, SVP of Digital Solutions at Visa.
While Apple Pay heads to the UK, it will also get a higher profile thanks to the transformation of its Passbook app into the forthcoming Wallet feature, according to details unveiled at Monday’s Apple developer conference. Nevertheless, mobile payments still have a long way to go before they approach the mainstream. (You’ll probably be seeing a sentence like that in most articles about mobile payments for the next few years.)
The main selling point of most mobile payment campaigns has been the “seamless experience,” conjuring images of breezing through checkout with a flick of your phone. The reality however has been that many locations lack the systems to allow users to utilize mobile payments causing hesitance in users to pick up mobile payments which discourages stores from installing those systems and so on and so on.
That may sound grim for mobile payments, but consumer and retailer adoption are slowly heating up. In addition to Dunkin’ Donuts essentially offering free money to Visa Checkout adopters, Apple also just announced a partnership with Square, a payment processing startup, to create a new reader for small businesses that will accept Apple Pay. Square is giving away 250,000 units in order to kickstart the new reader’s use.
While we are still a few years off from total mainstream acceptance of mobile payment systems, the efforts of large companies like Apple, Visa, and Dunkin Donuts combined with the support from Square and small businesses around the country are setting the stage for a decidedly more mobile future of consumer experience.
Fixing The Past
“Connected devices are changing everything we know about shopping and paying as commerce increasingly shifts from the physical to the digital world, mobile included,” said Shrauger. “More than 60 percent of the time that people spend shopping online is on mobile devices.”
In the past, shoppers resisted the lure of mobile payments because smartphone screen sizes were too small, making the experience more difficult than paying with a card, Shrauger added. Also, consumers worried about security of paying for something with their phone. At least in the latter case, consumers have been warming up to the idea of mobile payments.
As for the feelings associated with the experience of using mobile pay, Shrauger asserted that “Visa Checkout provides a unique solution to this because it simplifies the payment experience and saves you time by safely and securely storing payment information.”