Making Merchant Mobile Payment Apps More Engaging


Why do merchant mobile payment apps lack customer engagement?

Mercator Advisory Group releases new research that assesses how Starbucks Mobile App has captured customer engagement while some other retailers have not.

Author: Raymond Pucci
Published on: January 19, 2017

Merchant mobile pay apps are proliferating, but most lack a mix of integrated features needed to entice consumers to adopt and use them. Customers require engaging features beyond just making a payment if they are to use a merchant’s mobile pay app frequently. Features such as loyalty rewards, mobile ordering, and target marketing drive customer engagement and foster long-term customer attachment to a retail brand.

Smartphones have become a mature consumer market, and mobile apps are ubiquitous, covering practically all product and service categories. Merchants need to develop their mobile payment apps not only so smartphone users can buy things easily and but also with compelling functionality that will keep them engaged so they become steady customers. Mercator Advisory Group’s latest research note, Making Merchant Mobile Payment Apps More Engaging examines various merchant mobile apps and highlights the compelling features and functionality that drive consumer adoption. The research also examines successful mobile app features that keep customers keep coming back.

“Mobile payment apps need to be more than just transactional—they should engage and entertain the customer. For example, the Starbucks mobile app sells the experience not just the coffee,” comments Raymond Pucci, Associate Director, Research Services, at Mercator Advisory Group, and author of the research note.

This document contains 10 pages and 2 exhibits.

Companies mentioned in this research note include: Apple, Chase, Citi, CVS, Dunkin’ Donuts, Excentus, Google, IBM, Kohl’s, Lyft, MasterCard, PayPal, Samsung, Starbucks, Uber, Verifone, and Visa.

Highlights of the research note include:

  • Mobile app features that drive higher adoption
  • Key aspects of Starbucks mobile app
  • Merchant categories best suited for mobile apps
  • Current and future players in the mobile app market



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