The sophistication of today’s mobile payments technology not only has the ability to streamline payment processes for companies operating within a range of industries. Now, it is enabling many companies to drive traffic and increase their conversion rates, by offering consumers fast and simple ways to pay for content and services directly through their mobile device.
Advancements in mobile payments technology are giving consumers the chance to pay for goods instantly via their mobile without requiring physical cash or a credit card. This has revolutionised the payments industry and according to Business Insider UK, mobile payments are now expected to grow at a rate of 80% to over £500 billion by 2020. However, this growth has also allowed consumers to become more connected to the services they are paying for, which ultimately helps companies to gather data about customers more frequently and on a much larger scale.
These developments are now offering significant benefits for the companies implementing mobile payments, by enabling them to transform normal data into smart insights about their customers. These new forms of intelligent data which can be collected when consumers pay through their mobiles are essentially small, valuable insights which together can be turned into actionable data to address both customer and business challenges, improve efficiency and increase sales.
By connecting with customers through their use of mobile payment methods, companies can increasingly look into specifics about their customers and wider consumer behaviours. For example, when consumers pay through a mobile device, insights such as buying behaviour, what time consumers are using their phones, how often they are visiting sites and on which devices can now be gathered and analysed. As a result, companies are able to build smart profiles about the people engaging with their products, giving them a better understanding of how best to tailor their services to their ideal consumer.