Earlier this week Reuters made a splash with a big story about how some big retailers are pushing into a “crowded” mobile payments market by releasing their own m-payment apps. Among the reasons for the initiatives mention by the piece, first place goes to the estimated $150 billion that retailers in developed countries spend every year to accept card payments from customers.

While merchants who adopt such systems can in certain cases enjoy lower transaction fees this may not be the most important benefit such retailers may enjoy. As or more valuable are the ability to integrate loyalty schemes into m-payment applications and the wealth of customer data that m-payments can offer merchants.

Loyalty = Interest

starbucks-mobile-loyaltyMeanwhile, it is crucial to understand that loyalty schemes represent more than just a key potential benefit of m-payments. For most merchants they offer the best – or only – practical way to encourage…

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