Walmart Pay, the retail giant’s mobile wallet, is poised to surpass Apple Pay in terms of usage in the US, according to Bloomberg.
The mobile wallet, which was first introduced in 2015 and is accepted in over 4,000 Walmart locations, is expected to pass Apple Pay in active US users by the end of 2018, according to a Crone Consulting LLC estimate.
There are several reasons for this sentiment:
- Walmart Pay adoption is accelerating. According to Daniel Eckert, who leads this digital payment service, Walmart Pay has gone from having thousands of new users just four or five months ago to enrolling tens of thousands of new users a day.
- Most people who adopt the wallet become repeat users. Roughly 66% of consumers who adopt Walmart Pay end up using the service again within 21 days. This stickiness could eventually develop into habitual usage, which could help the mobile wallet surpass competitors.
- Walmart can leverage the core features of a retailer mobile wallet to promote adoption and usage of its service. Unlike Apple Pay or Samsung Pay, retailer mobile wallets are not beholden to a specific device, meaning more people are able to adopt the wallet. And because the wallet is for consumers who shop at the retailer offering the service, a company like Walmart is able to integrate features such as in-store promotions, coupons, rewards, and gift-card balances to entice its shoppers to use the service.
Although Walmart may be challenging Apple in mobile wallet payments, it’s likely more focused on holding off rival Amazon by using digital services to stay engaged with its consumer base. Amazon — which has been making moves to encroach on Walmart’s physical network by acquiring high-end grocer Whole Foods for $13.7 billion in 2017 — has built out a suite of digital payment offerings to attract and engage with consumers.
These offerings include, but are not limited to, in-store mobile payment capabilities; a service that allows customers to top up their Amazon account balances with cash at select brick-and-mortar stores; and the opportunity to earn cash back when loading money to account balances. The introduction of Walmart’s own digital offerings could keep customers loyal to its services, especially as commerce becomes more digitized.
- Explains what hurdles universal mobile wallets have faced.
- Details what features retailers have adopted into their mobile wallets that have been successful
- Analyzes the use cases of retailers that have successfully leveraged their mobile wallet offerings to push growth.
- Identifies how universal mobile wallets will eventually slow growth for retailer-based mobile wallets.