Mobile wallets are now offering reward programs

In the game of mobile payments there are only a few key players, but that hasn’t slowed the rate in which new services are being offered. When developing mobile wallets early on, most developers realized we carry more than just our credit and debit cards in our wallet. Because of this, the biggest mobile wallets offer users the ability to store more than just traditional payment cards, such as gift cards and even loyalty cards. The innovation doesn’t stop there.

At Money20/20 in Las Vegas last week, Samsung announced a number of new features for Samsung Pay. Amongst them was the announcement of a nearby deals feature which gives consumers the opportunity to benefit from discounts wherever they go. Then just recently, Samsung announced a new feature that is the first of its kind; a system-specific loyalty program called Samsung Rewards.

Neither Android Pay nor Apple Pay have a rewards program implemented yet, but that doesn’t mean that they won’t. Currently, the Samsung users that are enrolled in the rewards program will earn points for every Samsung Pay transaction and can eventually redeem them for certain retailer gift cards, prepaid Visa gift cards, Samsung products, and more. The entire system is setup similar to typical credit card rewards programs but has a few differences.

Samsung is working with retailers to create limited-time bonus offers which give users a chance to earn additional points by making a purchase with the application at certain locations. There is also talk of a tier-like system that rewards users who use the application often with more points during a specified time.

Mobile devices have started becoming the primary portal for every aspect of banking – account management, customer service, payments, and now rewards. This specific rewards program is not replacing any existing ones that apply to the cards used within the app. It is working in tandem with the selected payment option. So how is this going to impact financial institutions? Marketers need to rethink how their offers will be delivered in a mobile world, and your services need to not only align with the current trends, but benefit your customers in such a way that your cards stay top of wallet even in the digital space.