A pervasive consumer wariness lingers as digital wallets maintain their increasing presence in the digitalization of the banking and finance industries. This situation prompts many digital wallets to enable their clients to make mobile purchases using loyalty points. It is an ongoing trend that continues to gain traction as brands seek ways to fuel digital wallet adoption and in-application purchases.
Authentication, Enablement and Security
Loyalty programs use the same infrastructure and security tools the credit card industry utilizes. However, the point of difference is that loyalty card transactions require authentication. Firstly, this is with the digital wallet and then with the actual loyalty program, which gives another layer of customer protection. These added layers of security enable ‘loyalty rewards’ to continue transitioning into their form of digital currency. The subsequent security measures protect consumers with two-factor authentication, not only protecting the clients’ password but also initiating an authorization code sent via email, text message, or phone call for identity confirmation.
These security initiatives are easing more consumers into using a digital wallet. While many consumers have been wary of embracing digitalization due to security concerns, brands offering loyalty rewards are one of the drivers in the transition to digital transactions. The incentives increase mobile wallet usage and adoption rates when factoring loyalty into the application.
Youtap’s Loyalty Incentive
Youtap has acknowledged this trend for loyalty-based integration, incorporating loyalty platforms into their customers’ networks and providing them with wide-ranging loyalty schemes that retain and maintain their client base. Youtap has achieved this loyalty by offering a diverse range of incentives across devices and loyalty types.
Concluding Loyalty in a Time of Impartiality
Loyalty continues to be an essential factor that FinTechs need to incorporate into their digital wallet application packages. Loyalty card initiatives need integration into their software development. There needs to be incentivization to enable this intangible factor to be adapted and adopted into the digital ecosystem, parallel to consumers’ lingering concerns about security. Youtap continues to develop inclusive software and its platforms based on loyalty and customer retention. Customizable rewards schemes are not new initiatives or inventions but are reminders of an age where dedication and commitment equated to loyalty and the personalized benefits they generated.
Loyalty continues to be critical to the future of the digital wallet. The response is, how do brands make loyalty and loyalty cards a part of their mandate for customer retention, satisfaction, and loyalty?