6 Credit Card Marketing Opportunities in the Digital Wallet Boom
The time is right for financial services brands to focus on digital wallets. According to a report by PYMNTS/ Nuvei that surveyed nearly 2,500 Americans, consumers are willing to try new payment methods, and digital wallets lead as the crowd favorite.
The report – which echoes many of our own conclusions on consumer affinity for the convenience and ease of use associated with digital wallets – focuses on these key insights regarding digital wallets:
- People are willing to adopt new payment methods. (Most consumers have tried new payment methods within the past year, and young consumers are the most willing to branch out.)
- Digital wallets are hot and rank as the most popular new payment method.
- Convenience, ease of use and broad acceptance are reasons cited for the popularity.
- Even for people who haven’t yet used digital wallets, 42% said they would be interested within the next year.
This hype around digital wallets doesn’t look like it will slow down any time soon: As we shared in a recent digital wallet infographic, the digital wallet market is predicted to grow 18.9% year-over-year through 2028.
Given this growth, let’s dig deeper into card and digital wallet marketing opportunities suggested by the PYMNTS/Nuvei findings:
- Lean into the curiosity of those most likely to experiment with payment options, such as younger and high-income consumers, who are the most willing to adopt new payment methods. According to the report, 79% of Gen Z consumers and 70% of Millennials tried out a new payment method in the previous 12 months, while 66% of consumers with annual incomes greater than $100,000 also experimented with new payment methods.
- Spark interest among members of older generations who may currently be hesitant to stray away from tried-and- true methods. Develop messaging that speaks to this demographic, while highlighting why a shake-up to their routine might be worthwhile.
- Emphasize the wide acceptance of digital wallets. According to the report, “67% of consumers who have adopted digital wallets in the past year did so because of their broad acceptance by merchants.”
- Underscore the “instant” nature of digital wallets. Customers tend to favor financial products that allow for faster or instant payments—after all, we live in the age of immediate gratification!
- Craft rewards programs focused on maximizing digital wallet offerings. Almost 64% consumers who use digital wallets cited rewards as a factor in adopting the payment method.
- Spotlight security benefits. Security is a recurring theme in consumer preference surveys regarding payment methods, the report explains. “If merchants and banks can demonstrate that certain newer payment methods are easy to use while also protecting consumers’ personal information, they may be able to help nascent methods reach a broader base of consumers.”
As the saying goes, nature—and consumers!—gravitate toward the path of least resistance. If card marketers can convey that using a card in a digital wallet is easier, faster and more convenient, they’re likely to see uptake!
As we continue to monitor this evolving trend, we encourage you to explore our tip sheet on best practices to drive digital top of wallet status.
