SOURCE: Urban Airship

Urban Airship

July 27, 2016 09:00 ET

New Survey Finds Mobile Wallets at Tipping Point for Consumer Adoption

Urban Airship's "The State of Mobile Wallet Marketing" Report Reveals That a Majority of Consumers Have Used Mobile Wallets and Want to Use Them More; Urban Airship Unveils Mobile Wallet Solution Enhancements to Help More Businesses Deliver Personalised Engagement to Customers

LONDON, UNITED KINGDOM--(Marketwired - July 27, 2016) - Regardless of age or gender, British consumers want to use mobile wallets to communicate with brands about sales, offers, coupons, loyalty programmes and more, according to The State of Mobile Wallet Marketing report published today by Urban Airship, the mobile engagement leader.

Urban Airship conducted a survey of 1,000 U.K. adults to analyse their attitudes, expectations and adoption of mobile wallets.

Mobile wallets are native to iOS and Android with Apple Wallet and Android Pay allowing smartphone users to receive and store content like event tickets, boarding passes, coupons and loyalty cards, as well as make mobile payments with credit and debit cards. Brands are increasingly using the non-payment capabilities of mobile wallets to reach and engage consumers, and the report finds that customers are responding. Overall, 45 percent of Brits have now used mobile wallets, with 23 percent of respondents using them in the past week. However, there are large gaps between what consumers have in their mobile wallets and what they want, suggesting strong demand for a wide-range of purpose-built mobile wallet items.

Mobile wallets, the report says, are now among the top four ways consumers prefer to stay updated on sales, offers and coupons, alongside decades-old channels including websites, email and text/SMS. Adoption is especially high for British millennials, an age group where mobile wallets overtook websites as the second most preferred communication channel (email, 59 percent; mobile wallets, 54 percent; websites, 52 percent; apps, 46 percent).

The young and more well-off also skew much higher in behaviors that make mobile wallets an ideal fit, from letting physical coupons go unused or expire (more than half of young Brits), to desiring the dynamic engagement and reminder functionality that mobile wallets provide.

See additional key findings below, or download the full report.

Additionally, today Urban Airship released the latest version of its mobile wallet offering, rebranded as Urban Airship Reach, an easy-to-use solution supporting diverse, large-scale wallet engagement campaigns for brands like GameStop, POLITICO Europe, Sprint and SXSW. New user interface enhancements enable non-technical business users to import data from other systems to instantly create individualised passes en masse. Together with the industry's first performance based pricing, Urban Airship Reach makes it easier for any business to take advantage of mobile wallet marketing with cross-platform passes that update in real-time, are location-aware and can message customers on their smartphone lockscreens -- all without building an app.

"Our EU Referendum Tracker for Apple Wallet offered an eye-catching, attention-grabbing addition to our robust Brexit coverage, enabling us to reach new and existing readers with key breaking news moments without requiring them to download an app, go looking for news or wait for a page to load," said Kate Day, POLITICO's editorial director for growth. "We were able to plan, develop and market the entire mobile wallet pass strategy and execution in a few weeks, and in 7 days leading up to and through the vote we built a base of 10,000 engaged pass users."

"We saw an uninstall rate of less than one percent for our mobile wallet sweepstakes pass tied to our 2016 Copa América Centenario efforts. This speaks volumes given the amount of messaging we sent throughout the tournament, demonstrating that those downloading the pass formed a qualified and engaged audience base," said Sprint's Digital Lead of Multicultural Marketing Luis Martinez. "We actually had more sweepstakes entrants install the mobile wallet item than opt in to other forms of communication, which shows the potential receptivity of this medium on the part of the customer for continuously communicating with them on mobile. We're just getting started with our understanding of the impact mobile wallets can drive for the customer and our business, but we're already seeing value."

"Businesses are looking for new lightweight, service-oriented ways to communicate with customers on mobile, and our findings make it clear that mobile wallets will lead the next wave of mobile engagement," said Brett Caine, CEO and president of Urban Airship. "There is a shift underway in how consumers want to interact with brands. They want relevant, personal and useful content with as little friction as possible. Billions of dollars are at stake as offers, loyalty, ticketing and membership shed paper and plastic to become items in a mobile wallet, and virtually any type of business can gain tremendous advantage from the simple, persistent and addressable customer connection they provide."

Key findings include:

Mobile Wallet Adoption High Among Young Brits

  • In the last three months, 60 percent of millennials have used mobile wallets compared to 40 percent of respondents who are 35 to 54 years old.
  • The top three mobile wallet items U.K. consumers have used the most are loyalty cards, boarding passes and coupons.
  • 68 percent of U.K. respondents, and 82 percent of millennials, are more likely to use mobile payments if loyalty rewards and discounts are automatically applied.

Coupons in Mobile Wallet Used More Often, Drive In-Store Traffic

  • 34 percent of respondents said they "always" or "often" forget to bring paper coupons to the store.
  • 41 percent of respondents said they "always" or "often" let coupons for products they're interested in expire or go unused.
  • If respondents receive expiration reminders via mobile wallet, 58 percent are more likely to use the coupon.

Consumers More Likely to Participate in Loyalty Program With Mobile Wallets

  • Almost a quarter (22 percent) of Brits use their physical loyalty cards only "sometimes" or "rarely." The top two reasons for not "always" using them: didn't bring the card (45 percent), and forgot they are part of the loyalty programme (40 percent).
  • 62 percent of respondents are more likely to use their loyalty card if it's on their phone.
  • 67 percent of respondents are more likely to join a loyalty program if points and rewards are automatically updated and immediately visible on mobile wallet loyalty cards.

Register for a webinar on 8 Sept. at 3 p.m. BST to hear how businesses can broaden mobile engagement to more customers by tapping into what they really want from mobile wallets. Complete survey findings are available for download in Urban Airship's The State of Mobile Wallet Marketing report.

About Urban Airship

Urban Airship provides the world's leading mobile engagement platform, helping thousands of businesses of all sizes form a direct and lasting connection with their customers. With Urban Airship, companies gain total control of their mobile footprint -- apps, wallets and user-level data -- to deliver experiences that get noticed and drive action across mobile or any other customer touchpoint. More than 40,000 apps and some of the most innovative global brands trust Urban Airship to accelerate their business through mobile marketing with an independent study calculating an average 878 percent return on investment for customers.

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