Digital Wallet

Services – Myths
and Reality
A commercial perspective
on success and failure
factors
Contents
Overview 3

Understanding consumer behaviour: 4

payment facts

A successful digital wallet service: 6

what are the key components?

What is slowing down digital wallet 7

adoption?

How can you make the digital wallet 9

commercially viable?

Solutions: what are the options? 11

Key success factors for commercially 13

viable digital wallets

Revenue generating opportunities: the 13

real economics of digital wallet services

The optimum launch strategy: a 15

perspective on the key ingredients

Conclusion 17

References 18

About CardMobili 18

Copyright © CardMobili 2014 2

Overview the marketplace. The paper sets out the argu-
ment that the digital wallet most definitely
has the potential to disrupt conventional
commercial practice, adding an important
Look back through the media over the past new dimension that can deliver viable reve-
two years, and the number of digital wallet nue benefits. This does not rely, however, on
and associated service launches is numerous. reinventing payment practices, but rather
So too are announcements about changes on recognising and capitalising on customer
of tactic or simply admissions of failure. Less engagement and personalised marketing. By
evident are tangible success stories, illustrating focusing on the consumer journey and under-
how the digital wallet concept can be made standing how value-added services can be
to succeed and what the core components used to aggregate the shopping lifecycle, we
need to comprise. There is clear evidence can achieve a greater understanding of the
that while the digital wallet concept contin- factors needed to create a successful digital
ues to hold considerable attraction for mobile wallet.
network operators, merchants, financial insti-
tutions and technology providers, there is The objective is to dispel the myths about the
no magic formula that guarantees market digital wallet, and argue the case for what
traction. really does work within a successful service
strategy.
Considerable attention continues to be paid
to payment methods within the digital wallet,
sometimes accompanied by the promise of
revolutionising customer payment habits, or
advocating mobile payments as the way
forward. There is, however, a fundamen-
tal difficulty inherent in these approaches
– card acceptance in developed markets
is high and, thanks to well-established ATM
networks, there is no issue with access to
cash. It is also fair to say that payment alone
does not automatically create an ecosystem
of mobile-enabled users. So there are some
essential elements missing from the payment-
led argument.

This white paper looks to set out the pros

and cons of the digital wallet concept, and
identify some of the factors behind adoption
patterns. It includes a detailed discussion of
payment-centric strategies versus consum-
er-benefit focused approaches, using the
latest market data and analysis from several
existing digital wallet solutions operating in

Copyright © CardMobili 2014 3

Figure 1: Understanding the consumer - value-added services provide the all-important aggregation factor in the
shopping lifecycle.
Source: CardMobili

Activate and develop

Create initiatives to available
expose brand consumer touch points
contents, products and that lead
services. to purchases.

Discover Explore

Engage Buy

Excel in customer
service, capture Ensure seamless
data to support the payment-method
shopping independent purchase
experience and gather capabilities across
new insights. channels.

Understanding is no easy task. Another issue is how to link

the online and physical commerce environ-

consumer ments. There are plenty of solutions for online

digital payment in existence, but it is a great

behaviour: deal harder to solve the offline challenge. At

present, it is fair to say that there is no single

payment facts digital payment solution that has successfully

bridged this divide and gained traction with
both consumers and merchants.

Consumers rely on cash and cards – these are Taking these factors into consideration, it is
immutable facts, borne out by many leading clear that there has to be a considerable
surveys and market polls. Carrying one or two incentive and benefit to the consumer, with
universally accepted payment cards is second most of us electing to choose a payment
nature on a day-to-day basis. Changing what option that represents the best possible value.
has become standard consumer behaviour

Copyright © CardMobili 2014 4

A study by Accenture provides a good illus- that delivers additional value-added benefits
tration of this point and found that merchants to the consumer. Hence the wallet continues
need to incentivise consumers through value- to come with us when we shop.
added tools to encourage adoption, as well
as attract more valuable customers. The If one follows the idea of understanding con-
same study also found that 60% of consum- sumer behaviour further down this track, it
ers, who already make mobile payments, becomes clear that a useful wallet needs
said they would probably do so more often to be all-embracing; a repository for many
if they received instant coupons, while some other elements that are relevant to the over-
36% said they would hand over personal infor- all shopping experience. This includes loyalty
mation in exchange for such rewards. Nearly cards, coupons, offers, receipts, lists, and tick-
half said they would increase their mobile ets, as just a few examples. By combining all
payments usage, if offered short-term, loca- of these elements into a wallet, we start to
tion-based coupons.¹ realise some tangible business benefits – tran-
sitioning “dumb” formats into intelligent prop-
It is a fact that we are not yet leaving our ositions that have the potential to connect a
wallet at home. The reasons behind this retail brand with individual customers. Quite
almost certainly rest on a question of incen- simply, they combine to create the catalyst
tive. Why would consumers change their that powers the digital wallet service.
habits unless there was a compelling reason
or incentive to do so? To date, the digital 84% of global respondents in a recent Nielsen
wallet focus has revolved around the issue survey said they were more likely to visit retail-
of payment, proposing it as an instrument for ers that offer a loyalty program.²
mobile payment as opposed to something

Figure 2: Enabling an ecosystem - aggregating all the key elements from different service providers.
Source: CardMobili

Copyright © CardMobili 2014 5

In the simplest terms, consumer purchasing is some pace, although it has not really won
driven by the need to get the best product or over consumers and brands as a strong value
service at the best price, particularly against proposition. No-one has yet managed to find
a background of tough economic times. For the magic formula that will transform the ugly
a merchant, the objective is to stand out from duck into a swan!
the competition, and win the consumer’s busi-
ness every time a shopping decision is taken. So what are the factors behind this lasting
The actual process of money changing hands strong interest? Why do large organisations
is a key part of the process, but by no means such as mobile network operators, financial
the sole imperative. The key is to engage institutions, digital brands and merchants
the consumer during the decision-making continue to regard digital wallet services as
process, and maintain loyalty thereafter to potential money-spinners capable of gener-
encourage repeat purchasing. ating new revenue opportunities?

Within current payment practice, card In order to provide some answers to these
payments continue to offer the most conveni- questions, we will look at five key areas:
ence for the majority of consumers. Merchants
are accustomed to card payment fees, albeit 1. What is slowing down digital wallet servic-
disliking the perceived high level costs, and es adoption?
are unwilling to invest in what seems as yet
unstable or unadopted alternatives. Mobile 2. How can you make the digital wallet
payments solutions therefore have some way commercially viable?
to go to address the convenience aspect
for consumers or the CAPEX implications for 3. Solutions – what are the options?
merchants, if they are to offer a genuine and
viable alternative. 4. Revenue generating opportunities: the
real economics of digital wallet services.

5. The optimum launch strategy – a perspec-

A successful tive on the key ingredients.

digital wallet
service: what
are the key
components?
As already stated, digital wallets have
attracted considerable attention for a
number of years – without actually taking
off in the marketplace. The idea of paying
with your phone is slowly beginning to gather

Copyright © CardMobili 2014 6

What is slowing down digital for this ecosystem has to be catered for
from the wallet’s inception, if it is going to
wallet adoption? offer the structure to sustain growth across
multiple criteria. Its initial build specification
• A digital wallet service is a complex needs to incorporate the inherent capa-
ecosystem. bilities and technical flexibility to enable
multiple players across vertical markets
A digital wallet service requires a promot- to get on board (finance, merchants and
ing B2C and B2B brand, diverse and valu- other service providers). The ecosystem
able content and a robust, scalable and has to be able to support and project their
flexible technological platform. Support programmes, operations and contents –
both online and offline – if it is to succeed.

Figure 3: A consumer-driven wallet - the complete picture.

Source: CardMobili

Brands and Merchants

Marketing Agencies
r)
ne
et nd

Coupon Providers
Ow
(W Bra
all

tennts)

Payment Processors
t
o ha
erc
n
(M

EPOS Providers
C

Technology
(Vendor) Transportation Services

End-to-end Solutions for SMBs MNOs

Customizable Web and Mobile Interfaces OTTs

(online brands)

Integration Layer (APIs) Mobile Financial Services

Modular and Flexible Components Media & Entertainment Brands

Copyright © CardMobili 2014 7

• The ecosystem requires incentives. • Technology lacks compliance standards.

Value-added services that support The lack of consensus regarding which

commerce, such as loyalty and promo- technology to deploy raises some major
tions, are central components for a digi- questions, particularly for merchants. For
tal wallet. Consumer rewards, bonus example, just how many digital wallets
programmes and similar tools such as are there going to be in the market?
loyalty points and coupons, have a How many should they be prepared to
powerful impact on a brand, when they accept? From a straight business perspec-
are accommodated intelligently in a tive, any merchant is understandably
mobile service. They combine to encour- reluctant to risk making costly changes
age adoption and are essential for the based on potential alone. The result is that
ecosystem to scale. Consumers are look- the majority are adopting a “wait and
ing to see an aggregated value within a see” stance, on the basis of only making a
mobile format, and today retailers of all decision to upgrade hardware and back
shapes and sizes rely on intelligent tools for office systems, once they can be assured
personalisation and targeting. that their investment will be protected.

Mobile coupons can broaden consumers’ Merchants are looking for two things
horizons. in particular from technology: flexibility
In addition to cultivating loyalty, a digi- to help preserve the high costs of initial
tal coupon via smartphone can also investment, and a future-proof technol-
persuade customers to try a new brand. ogy foundation that is scalable and will
Nearly half of those surveyed (47%) said serve the business bottom line.
they are open to doing so.
• It´s mostly a business problem not a tech-
Digital coupons continue to rule the world nology problem.
of promotions.
59 % of respondents said that out of all the While the introduction of new technol-
different types of promotions a retailer can ogies can present its own set of unique
employ, digital coupons still sway them challenges, the market is prepared to
the most when it comes to influencing a address these if there are tangible benefits
purchase decision. to be gained. Take for example the situa-
tion with NFC adoption - its prospects are
Consumers are likely to spend more being challenged and proving difficult,
when redeeming digital coupons via partly due to fragmentation, and other
smartphone. hybrid technologies that are emerging.
The survey found that 55% of smartphone Other companies are pursuing BLE or
coupon users will spend more money QR Codes/barcodes, on the basis that
during their online or in-store visit.³ they are sufficiently mobile phone and
consumer friendly to show or scan in-store.
Technology itself is not the main driver – it
is what it enables that provides the all-im-
portant incentive.

Copyright © CardMobili 2014 8

 If one looks beyond the payment-based • A digital wallet service is a companion
element in the equation, putting the app to everyday activities, supporting
emphasis back on a digital wallet concept the commercial experience irrespec-
that uses cost-effective, business-friendly tive of any payment method. Traditional
and proximity-based engagement solu- payment scenarios such as card debit or
tions, the picture becomes a lot broader credit and cash are likely to remain current
and simpler. Using this approach, tradition- for a considerable period of time, and
al and existing marketing initiatives can there is no clear incentive for consumers
be realised, enabling brands to engage to choose mobile payments over conven-
with consumers rapidly and easily. It helps tional cash-based methods. It therefore
overcome the technical complexities at seems sensible to pursue a digital wallet
a stroke, providing a platform from which strategy that provides a value-added
to build engagement and the necessary shopping experience, regardless of how
ecosystem to support a long-term and a transaction is completed.
successful digital wallet strategy.
• Payment does not define a digital wallet
• Mass-market appeal is fundamental. service by itself, nor does it provide a
viable commercial platform for an attrac-
This is without doubt the end game for any tive ecosystem that connects stakehold-
digital wallet service. For it to succeed, ers. A solution that aggregates loyal-
there has to be widespread consumer ty programmes and campaigns from
take-up and ongoing adoption. However, multiple merchants, all co-existing under
consumers have well-publicised fears a single wallet brand as a standalone
about mobile payment security, particu- proposition, offers a substantially great-
larly with regard to how their personal er chance of successful market take-up.
data is stored, secured and used. It is fair Existing mobile payment solutions stand a
to say that we are a long way off this issue greater chance of success if they added
being resolved – clarity on the subject this distinctive edge, providing a combi-
does not exist. For retailers considering nation package to encourage consumers
the in-store context, there simply is not to adopt it.
a strong enough argument showing the
commercial benefits of mobile payment- • Commercially strong value-added services
based solutions, so adoption at their and such as loyalty cards and promotions have
is also a challenge. always provided a critical link between
consumers and merchants. There is clear
existing momentum for a digital wallet
How can you make the digital service that aggregates a bundle of loyal-
wallet commercially viable? ty cards, offers and coupons, recognising
that consumers are highly cost aware.
In order to be truly successful, a digital wallet The recent global crisis, which impacted
service has to be an end-to-end experience. most of the developed economies, has
It has to adopt a holistic approach that simply put this fact into sharper contrast
is designed first and foremost to promote and made it more relevant. It has also
commerce and customer interaction. become fashionable to bargain hunt. All

Copyright © CardMobili 2014 9

 of these factors have contributed to make • Propositions that are purely mobile
it harder for merchants to attract custom- payment-centric are stalling adoption
ers, fighting ever harder for some portion rates for digital wallet services per se, on
of the consumer wallet. The only way to the basis that they appeal only to early
influence shopping decisions is to get in adopters and specific market outlets.
front of the customer – by providing the They are extremely limited in terms of
best offer or the best deal and, important- data collection opportunities, with the
ly, communicating that to the consumer. actual act of payment representing an
intermediate touch point in a consum-
49% consumers wish more stores offered er engagement lifecycle. Mobility in this
mobile apps to collect and redeem loyal- context is, we argue, all about projecting
ty points. business services and programmes, gener-
ating awareness, footfall and repeat busi-
46% consumers choose to shop at stores ness via multiple touch points during the
that offer mobile loyalty programs over customer journey.
stores that do not.
Following this logic, there are some key
44% consumers would strongly recom- components that constitute the ideal digital
mend a company to friends and family if wallet as depicted below.
it offered a mobile loyalty program with
personalized rewards.�

Figure 4: An aggregated wallet - delivering an outstanding customer experience.

Source: CardMobili

Offers Balance
Targeted offers from Balance enquiry for
relevant merchants points; pre-paid,etc

Messages
Merchant Stores
communication Location-based services

Partners Extra info

Instant visibility of Terms & conditions for the
participating partners loyalty programme/card

Copyright © CardMobili 2014 10

Solutions: what are the options? • Extend existing loyalty programmes and
marketing initiatives instantly, elevating
A digital wallet service must meet the need to the status of loyalty programmes and
reduce complexity and generate a straight- using new digital and mobile-friendly
forward and consistent mobile customer formats for distribution of content and
shopping experience. An example of this is in-store customer identification.
organising a variety of loyalty cards, provid-
ing easy access to digital coupons and • Seamlessly collect consumer behaviour
discounts, tickets, receipts and other items for data to enrich customer relationships
the consumer’s own reference. and campaign management systems,
with actionable insights to retain those
It is clear that content providers need a firm consumers.
business rationale in order to commit to any
digital wallet service, with the provision of Interestingly, there are existing solutions that
new marketing tools representing a strong retailers are already using that correspond to
incentive. A priority for these support tools is the qualities identified above. They are called
to achieve a balance between empower- digital loyalty schemes – enabling retailers to
ing the consumer’s lifestyle on the one hand, reduce the overheads associated with printed
versus making a tangible contribution to the paper and plastic, plus the distribution of the
retailer’s bottom line. They need to be provide loyalty cards and coupons that currently fill up
a seamless set of features in terms of enabling our wallets.
functional control across operations, market-
ing, customer care and partners’ work- Above all, a good solution needs to support
flows, with a minimal impact from the user’s the customer journey, something that is essen-
perspective. tial in today´s digitally connected lifestyle.
Anytime and anywhere customers never
So what are the best solutions on offer? Here is want to miss a discount, while wanting quick
a guide to what they need to provide: access to their points or loyalty status and the
ability to use their coupons. This is just the tip of
• Replacement of old-fashioned and the iceberg – add the option to access their
cumbersome tactics and formats that own details, check where the nearest store is
push consumers away from brands, with or even call them in a single click, and we are
simple mobility solutions such as self-ser- closer to the current “ideal” for a simple digi-
vice registration forms for real-time, auto- tal service.
mated issuing of digital cards. These are
already available, and are valuable from
a customer acquisition perspective.

• Allow new levels of engagement with

personalised, relevant and direct commu-
nication. Include actionable and real-
time promotional contents that generate
in-store footfall and influence shopping
decisions.

Copyright © CardMobili 2014 11

Figure 5: Bringing the digital wallet to life – the customer journey and the merchant engagement process.
Source: CardMobili

No need for paper

and plastic in the
wallet to go shopping
during a consumer's
daily routine
Awareness

Decision

Purchase

Satisfaction
Consumers never miss
out on a good deal, Customer Experience
and can find any
business anywhere
Loyalty Merchant Process

The consumer checks

out the new coffee
shop on the way to
Consumer registers for Consumer receives a thank Consumer receives an Consumer purchases Consumer made the final
work, which sent him a
the loyalty you message with a offer to bring a friend for those new headphones decision to purchase an
special opening deal
programme instantly satisfaction survey a treat with a seamless mobile item thanks to a digital
checkout experience coupon

Targeted campaigns Business can acquire Any business can reach Push tailored offers or Your product and Gather insights that help
to new potential members to acknowledge and interact directly with services that reflect services are available support the customer
customers as they and reward customer all of its customers, as well preferences and to consumers on the experience reducing churn
pass your business loyalty as communicating on location data go, 24*7 and generating repeated
special occasions business

Reach Acquire Develop Retain

Copyright © CardMobili 2014 12

Key success factors for Revenue generating
commercially viable digital opportunities: the real
wallets economics of digital wallet
services
We believe that there are six key factors to
create a successful and commercially viable There are a number of factors that should be
digital wallet service: considered within the optimum wallet busi-
ness model, as defined from the wallet service
1. The core technology needs to deliver the owner’s perspective. Firstly, there is the initial
value-added commercial element within upfront investment for wallet deployment and
the digital wallet, focusing on services that launch, followed by the operational costs of
drive consumer and merchant value. running the service 24*7, and thirdly, the mone-
tisation strategies for revenue generation.
2. Loyalty, rewards and membership pro-
grammes need to be well designed to When it comes to investment and costs, the
provide additional value to the consumer. fundamental principles underlying the busi-
ness model are:
3. Offers, promotions and coupons: all forms
of marketing and promotional services to • Investment: the wallet service owner’s
consumers must be supported. upfront investment is divided into the
promotion and marketing of the service
4. Communication tools between merchants to build traction, plus the technolo-
and consumers must support addition- gy licensing and integration for service
al brand engagement through targeted deployment. While the latter can be kept
communication. to a minimum, particularly as technolo-
gy licensing models become more and
5. Location-based features: where to go, more subscription-based, the former of
where to buy and real-time reminders. necessity demands the lion’s share of the
wallet owner’s resources. The priorities
6. Mobile shopping capabilities for online involve attracting content and consum-
and in-store shopping. ers to generate traction at launch, which
may include, in some instances, subsidised
Underpinning all of this should be a flexible merchant enrolment to accelerate the
and robust technology foundation, capable ecosystem.
of supporting and extending existing market-
ing initiatives, while rolling out effective new • Revenue-generation: technology licens-
features and mobile touch points within the ing follows a “pay as you grow” model,
wallet. which reduces risks and allows for return
on investment to be achieved earlier in
the process. This is achieved as a result of
the wallet owner implementing a reve-
nue-generating service from the outset.

Copyright © CardMobili 2014 13

 Platform hosting and operating costs, • Offers and coupons, available to both
which are also relevant from an opera- loyalty programme members/cardhold-
tional costs’ perspective, also follow a flex- ers of a specific brand or non-customers,
ible model, with capacity being adjusted and priced differently if viewed, saved
according to growth and traction. and/or redeemed.

As a result, the wallet service owner has a In all scenarios, volume-based pricing ensures
predictable cost base for the service, and that there are built-in incentives for merchants
multiple revenue generating services that and brands, enabling them to focus on growth
can provide attractive content monetisation, and continuous usage of their content. The
such as: model itself is tuned as “pay for performance”
and, as such, is very effective from a return on
• Digital cards for loyalty and membership investment perspective.
programmes, charging a fee/card/period
of time and leveraging the multiple cards It is also possible to achieve monetisation of
a user carries in its wallet to multiply mone- a digital wallet service with elements and
tisation opportunities. services other than the payment transaction,
providing merchants, brands and all other
• In-app communication messages for content owners with a genuine “value for
brand-to-consumer communication, money” proposition.
which can be priced differently accord-
ing to its effectiveness: message sent vs.
message viewed.

Figure 6: Creating the virtuous circle of mass market adoption.

Source: CardMobili

Content

Monetisation Digital Wallet Value

proposition
Success factors

Communication

Copyright © CardMobili 2014 14

The optimum launch strategy: • Identify and encourage participation from
other content providers that are looking
a perspective on the key for additional channels – this will encour-
ingredients age rapid sourcing, accurate distribution
to the relevant audience, and maximise
In CardMobili’s extensive experience, as one effectiveness.
of the longest-standing providers of digital
wallet services in operation, launching and • Above all, good content will accelerate
operating a successful digital wallet relies adoption and create momentum.
inherently on understanding the customer
perspective and matching a digital wallet to There is no such thing as too much commu-
their digital lifestyle. nication

This is our blueprint guide for a successful • It is very important to design a simple
launch strategy: communication plan with a clear objec-
tive: user acquisition!
Identify different value propositions for differ-
ent business needs • Use your customer database and
communicate one simple benefit with a
• Existing loyalty programmes: the key supporting call to action url: “Make your
elements involve replacing plastic, going wallet lighter” or “Too many cards in your
digital, providing convenience to custom- wallet?” Communicate via SMS and email
ers, increasing usage and perceived newsletters.
benefits, adding speed and customer
intimacy. • Direct all initiatives to a single, device-re-
sponsive landing page with simple “call
• Serving the SMBs: their need is to move to action” items and encourage regis-
fast, offer a service that is 100% relevant tration. Include download links for mobile
to consumers, and compete creatively. As applications.
a result, they need a turnkey solution that
works out of the box, simply and without • Use social media teasers to communicate
significant costs. a single simple benefit “Too many cards in
your wallet?” with an image of the mobile
Content is king phone application holding multiple cards.
Early adopters will share that one simple
• Getting the right mix of large or flagship benefit with their friends.
loyalty programmes from nationwide
merchants with a variety of local business • Distribute a press release to media outlets,
or SMB content. Including several large detailing the benefits for users and the
merchants, combined in a non-compet- merchant’s ability to access the users.
itive matter reinforces confidence in the
solution and pulls consumer adoption. • Be prepared to give feedback to users
via customer care service, app stores and
• The inclusion of small merchants ensures social media channels.
local reach and frequency of shopping.

Copyright © CardMobili 2014 15

 • Promote selected partners loyalty
programmes and offers.

• All of the above activities can be

combined for the launch day and then
again for major service updates and
content additions.

• Follow-up with regular reminders of the

service for late adopters and feature the
best functionalities and what´s new.

• Look out for the best users within your

community and have then share their
stories with others; testimonies are very
powerful and effective.

“You don’t need to be big to start, but you

need to start to be big” Zig Ziglar

• It’s more important to launch with some

features and content rather than take the
extra time and try to be perfect. Otherwise
you will be too late.

• The solution will scale with the fundamen-

tals as long as you focus on user conveni-
ence they will be hooked with the basics.

• Maintain the solution with a permanent

cycle of evolution based on user and
merchant feedback. We are all used to
update cycles in our apps.

A well-conceived and intelligently launched

service will by its very nature help ignite a virtu-
ous cycle of growing adoption and content,
attracting both sides of the equation: users
and merchants. Adoption by both sides will
without doubt generate valuable insights,
and as a result fuel a roadmap of service
improvement, which is absolutely fundamen-
tal to success.

Copyright © CardMobili 2014 16

Conclusion intrinsic value of the digital wallet becomes
diluted and too difficult to execute. Merchants
are already well aware of the importance
of customer engagement and personalised
We would define a digital wallet service as an marketing. Therefore, if we return to basics,
aggregator of contents sourced from multi- and put the emphasis on building consumer
ple merchants, brands and service providers confidence with a digital wallet that they
that support a digital and mobile shopping really want to use, the chances of success
experience. Payment represents a compo- are far more likely. This involves creating
nent of a digital wallet service, but is not the an ecosystem within the digital wallet that
sole rationale. Commercially oriented value- provides real value for both service providers
added services are a critical element within and consumers. By designing a digital wallet
a successful digital wallet – in fact, they are from the outset for commerce, without any
the catalyst that transforms a digital wallet limitation imposed on the payment options,
service into a successful and viable commer- you start with a dynamic and viable platform.
cial entity.
There is an interesting parallel with Apple’s
As consumers become more demanding in recent decision to focus on the digital wallet
terms of what they expect brands to provide – “it’s all about the wallet” cited Apple CEO
via digital and mobile touch-points, they will Tim Cook at the launch of Apple Pay. Apple
also become less forgiving about failures to identified that most of the activity in this
deliver. Merchants wanting to reach out to field to date has focused on creating busi-
them will have to provide both the incentive ness models that were driven by self-interest,
and the quality service to encourage frequent rather than the user experience. By turning
usage and transactions. Essentially, the digital the problem on its head, Apple is adopting
wallet offers a new consumer channel, from a new approach, albeit in tackling the issue
which to deliver traditional services – using of payments in the first instance, with a value-
new non-disruptive and consumer-friendly added and user-centric twist.
digital and mobile formats. The ultimate
objective is to generate a comprehensive The digital wallet has enormous and as yet
and successful digital wallet ecosystem that largely untapped potential. It deserves to
develops and evolves organically of its own attract ongoing market interest and engen-
accord. By delivering personalised services der new initiatives, because it resonates with
instantly and directly to the consumer, the how consumers want to live their lives. From a
digital wallet has the potential to become commercial viewpoint, it is exactly that point
the single most important channel to extend that holds the key to success. Look at how
brand influence and achieve monetisation. consumers want to track down deals, shop
conveniently and interact with retail brands,
When we look back over time, it is interest- then match a digital wallet strategy to reflect
ing to note that many of the most success- these patterns, building the vital ecosystem
ful concepts stem from the simplest ideas. In that will support the entire user experience
the context of the digital wallet, we may be with intelligence, innovation and accelerat-
in danger of overlooking this – by putting the ing potential for commercial success.
major emphasis on payments or money, the

Copyright © CardMobili 2014 17

References About
¹ Source: “Driving Value and Adoption of
CardMobili
Mobile Payments - Consumers Want More”,
Accenture, April 2013. CardMobili has been innovating in the digital
wallet sector for a number of years, making the
² Source: “Global Survey of Loyalty Sentiment”, company one of the most experienced play-
Nielsen, November 2013. ers in this rapidly evolving market. Operating
across Europe and the Middle East, the
³ Source: “The State Of Digital Coupons: How company is a leading developer and supplier
Digital Coupons Are Adapting To Mobile of cutting-edge digital wallet services and
And Omnichannel”, A Forrester Consulting solutions, powered by an advanced tech-
Thought Leadership Paper Commissioned By nology platform. CardMobili provides mobile
RetailMeNot, August 2014. network operators, retailers and financial insti-
tutions with end-to-end solutions for deploy-
� Source: “US Mobile Marketing and Commerce ing and managing a self-service, digital and
Survey”, 451 Research, June 2014. mobile-based digital wallet ecosystem.

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