Walmart Shoppers More Likely To Use Apple Pay In Walmart Than Walmart Pay

Walmart Inc. shoppers apparently aren’t as loyal to the giant retailer’s own mobile-payment service as they are to Apple Inc.’s Apple Pay. That’s one takeaway from the latest Mobile Pay Tracker from Auriemma Consulting Group.

New York City-based ACG found that Walmart shoppers who use Apple Pay and have a mobile-payment preference are twice as likely to choose Apple Pay over Walmart Pay. Mobile apps from other retailers—Target Corp.’s Wallet and Kohl’s Corp.’s Kohl’s Pay—also are less likely to be chosen over Apple Pay, Jaclyn Holmes, director of Auriemma’s Payment Insights practice, says in an email to Digital Transactions News.

“Among those who have used both an open-loop and a closed-loop wallet, 53% prefer the concept of open-loop wallets, whereas 11% lean toward closed-loop wallet—of note, 35% don’t have a preference,” Holmes says. “The top reason for an open-loop preference is being able to use it in multiple locations, a belief that they tend to be more secure, and that they allow consumers to pay with whichever card they want to use.”

Auriemma conducted an online survey in April and May of 921 U.S. adults who made a purchase at Walmart, Target or Kohl’s within the past six months. They were further distinguished by their use of a mobile payment app.

While retailer-backed mobile wallets can offer deep personalization, such as targeted offers, coupons, and rewards, they are limited to where they can be used. Tech firms with open-loop wallets have been working on providing similar personalization with rewards program integrations and offers based on a user’s location.

Holmes says loyalty and rewards are what’s driving shoppers to the mobile-payment app of their choosing. “The pay functionality is a secondary benefit that’s helping reduce steps in the process, while adding security and speed.

As an example, Holmes says in-depth interviews with consumers show most who use amerchant’s pay service mention it secondhand. “They downloaded the app to check pricing on items, discover coupons, access their account information, etc. As they used the app more, they grew more comfortable with it and its pay feature,” she says.

To that end, Holmes advises retailers with mobile wallets to emphasize offers and promotions to entice consumers. She also suggests marketing features that make shopping easier, such as an app’s ability to scan a bar code to check pricing. Her third piece of advice is to make the wallet-based shopping experience one that smoothly transitions to the checkout.

“Finding opportunities to drive value, customize the shopping experience, and positively influence each aspect of the customer journey—from discovering new items and deals, to reserving items, to applying coupons and building loyalty through rewards—is a key differentiator,” she says.