How’s Walmart Pay system works, and how’s with their competitors.
Walmart Pay versus their competitors. Wal-Mart Stores Inc. (WMT) has several cellular payment competitors. While the technology of Apple Pay and Android Pay (owned by Apple Inc. (AAPL) and Alphabet Inc. (GOOG) respectively) are the main competitors in the retail space, by banning them from their stores, Walmart has set a monopoly for Walmart Pay that is not excited. . Instead of enjoying monopoly, Walmart must innovate to prevent outside pressure from accepting competitors.
Walmart Pay will be very good for Walmart. Not only that will allow stores to save transaction costs but that will give Walmart the customers they want: people who are willing to spend a little more for convenience. Walmart implemented many changes to reform its reputation and allow its customers the ability to pay by cellular is a big step for retailers.
Walmart currently prohibits its customers from using major competitors Walmart Pay, Apple Pay and Android Pay. The reason is consumer data. Walmart does not like the way Apple Pay and Android Pay anonymize payment data, prohibiting Walmart from tracking customer purchases and targeting them for advertising. With Walmart Pay, retailers will get information directly from consumers and can use the data along with in-app advertisements and coupons.
Apple Pay and Android Pay for miles ahead of Walmart in terms of customer convenience. Walmart Pay requires users to open their cellphones, open (and possibly enter) to the application and take photos of QR codes to process payments, competitors use NFC technology and fingerprint scanning to secure payments.
Target Corp. (TGT) hopes to launch the Target Pay application in the coming months. This application, which is also rumored to use scanning technology, not NFC technology, will be a big threat to Walmart Pay. Today, Walmart is the only retailer in America that has its own mobile application payment system. Walmart hopes that the cellular payment option will bring customers to the store, but if other large stores follow, Walmart will lose its competitive advantage.
Or, if other big box retailers start accepting Apple Pay and Android Pay, Walmart has no choice but to allow cellular payments, not to become a Luddite retailer that makes shopping uncomfortable. An impractical and potentially expensive choice for Walmart is to allow customers to buy items in the application using the Walmart application along with Apple Pay and Android Pay. That way Wal-Mart can allow cellular payments and track user spending habits.
Today, one company has the type of application that all retailers want to have. The Starbucks Corp (SBUX) application allows users to upload gift cards and ask them to reload automatically via credit card. By integrating its loyalty program into its application, Starbucks virtually guarantees that cellular is a payment method for its regular users because it strongly encourages customers to pay through the application.
This is not to say that Walmart must have a loyalty program. Instead, Walmart can change its application to be similar to the Starbucks gift card application and then fully integrate the popular Savings Viewer feature. At present, Catcher Savings users must take their receipt photos using the Walmart application to be returned automatically (to Walmart gift cards) for any cost savings that are priced accordingly. This feature encourages buyers to shop at Walmart and virtually guarantees that they will get the lowest price. Although the process is complicated and easily forgotten. If Walmart automatically captures every savings when customers use the Walmart application, retailers can ensure that competition payments – whether other cellular payment services, cash or credit cards – will be used less and less.
Walmart does not have competition in its stores for cellular payment options. However, pressure from consumers can force Walmart to accept competitors in the future. By modifying the current system, this can enable Apple Pay and Android Pay without sacrificing the data needed to attract customers. https://bit.ly/2UkJ5Z4
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