Mobile Wallet Consumer Report Non-payment opportunities for marketers

August2013
Mobile Wallet Consumer Report
Non-payment opportunities for marketers

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@Vibes 2013. All Rights Reserved.
Executive
summary
2Executive summary
As the “Wallet Wars” continue on the payment side
of the mobile wallet, the new frontier for retailers is
on the non-payment side — meaning the part of the
wallet used to organize, but not pay for, items. The
non-payment side of mobile wallet eliminates the
need for paper items (e.g., coupons and boarding
passes), organizes bulky items (e.g., loyalty cards)
and expedites the checkout process for consumers
at their favorite retailers. The non-payment side of
mobile wallet arms retailers with a versatile mechanism
that delivers personalized and relevant content that
drives engagement, builds customer loyalty and draws
consumers into their brick-and-mortar stores.
Consumers have confirmed the need for – and
have made it clear that they are excited about – the
convenience of storing mobile wallet content on their
phones. For retailers, consumer desire and demand
reveals the untapped potential of the non-payment side
of the mobile wallet.
For the past few years, mobile wallets have largely
referred to paying for merchandise with your mobile
phone. Then, in September 2012, Apple started the
non-payment movement with Passbook, setting it
apart from other mobile wallets in market. This allowed
consumers the opportunity to move away from physical
coupons and loyalty cards, by saving them to their
mobile device instead. Samsung introduced Samsung
Wallet in August 2013 and Google Wallet Objects
— the non-payment side of their mobile wallet — will
launch this fall, showing the growth of the non-payment
side of mobile wallet. With more than 50 percent of
smartphone users on the Android operating system,
marketers will now have the opportunity to reach a
broader mobile wallet audience.
Vibes commissioned the industry’s first-ever mobile
wallet research focused on the non-payment side of
mobile wallet to help paint a vivid picture of the true
potential of the non-payment side of this tool. The
consumer survey, fielded in July 2013 with 1,000
smartphone users, sends a strong message that
consumers desire the non-payment side of mobile
wallet. This definitive research reveals the following
consumer attitudes and behaviors related to this
emerging mobile marketing technology.
The non-payment side of the
mobile wallet creates tremendous
opportunities for marketers
We need smartphones to organize our lives, and
now we need mobile wallets to help us organize
our smartphones.

3Key takeaways
1. It’s still early 2. Demand is high
3. The opportunity is now
We are in the very early days of the non-
payment mobile wallet transformation. This is
not surprising because Passbook debuted in
September 2012 and Google Wallet Objects is
expected to launch soon.
Smartphone users are eager to try mobile wallets
for more than just making payments with their
phone. The need and demand for the non-
payment side of the mobile wallet is clear.
Consumers have spoken about how and why they would use mobile wallets, offering retailers the
guidance and direction they need to get started right now to meet the needs of the mobile consumer.
48%
33%
85% 59% 44%
19%
of consumers are
aware of the non-
payment side of
the mobile wallet
have no idea what
mobile wallets are
only think of
mobile wallets
for making
payments
of consumers
say they would
receive some
benefit from non-
payment mobile
wallets
of consumers
say they would
have a more
positive view of
retailers if they
started to deliver
digitized mobile
wallet content
of non-users
think a mobile
wallet used to
store information
would enhance
their shopping
experience
The majority of consumers
(55 percent) would prefer
to receive mobile wallet
content weekly
Digitizing paper items (22 percent)
and organizing coupons and
loyalty cards (19 percent) are the
top benefits
Email is the most preferred method
for receiving mobile wallet items
(46 percent), followed by text
message (20 percent) and native
apps (19 percent)
Key takeaways
Only 19 percent of smartphone users have noticed any
retailer offering mobile wallet-specific promotions in the
past six months
33 percent of consumers have used mobile wallets for non-
payment (e.g., storage of loyalty cards, coupons, etc.)

4Survey findings
There continues to be confusion about the definition
and benefits of the mobile wallet. While the common
perception may be that consumers think of mobile
wallets as a payment device, the data shows that 48
percent of consumers understand the non-payment
features available with mobile wallets.
One-third of consumers believe that a mobile wallet
is used for payment only. This finding demystifies the
belief that most people only think of mobile wallets as
a payment tool. Nineteen percent have no idea what a
mobile wallet is or what it is used for.
Only 19 percent of smartphone users have noticed
retailers offering mobile wallet-specific promotions
in the past six months. This is in part because Apple
Passbook has been out for less than a year. The
challenge for mobile wallet adoption with consumers
is two-fold – there continues to be a lack of consumer
awareness, and a lack of ever receiving – or even
hearing about – a mobile wallet offer or promotion
from their favorite brands and retailers.
With over half of consumers unaware of the non-
payment side, this presents a huge opportunity
for retailers.
33%
27%
48%
21% 19%
A mobile tool that
allows me to pay
for items directly
from my phone
A mobile tool that allows
me to both pay for items
with my phone and
store information
A mobile tool
that allows me to
store information
I have no idea
what a mobile
wallet is or what
it’s used for
What is your definition of a “mobile wallet”?
Only 19% of smartphone users have noticed any retailer
offering mobile wallet-specific content in the past six months.
Base: Total n=1,000
Source: Vibes 2013 Mobile Consumer Survey – August 2013
Further consumer education
needed for ‘mobile wallet’
Survey findings

5Survey findings
Benefits of the non-payment
mobile wallet
Demand for the non-payment mobile wallet is high –
85 percent of consumers say they would receive some
level of benefit from storing and organizing offers and
loyalty cards on their phones. The convenience factor
of digitizing and organizing items is very appealing to
consumers. Digitizing paper items (22 percent) and
smartphone organization (19 percent) are the mobile
wallet benefits that would most enhance the consumer
shopping experience. Consumer desire is clear,
creating an unprecedented opportunity for retailers to
deliver time and location-aware content to their target
customers’ mobile phones.
22%
85% perceived benefit
19%
13% 13%
10%
7%
15%
Which mobile wallet feature would benefit you the most?
Digitizing
paper items
Organizing
on your
smartphone
Managing
point balances
Time
sensitive offers
Automatically
updated items
Location
aware alerts
No Benefit
Base: Total n=1,000

6Survey findings
As stated throughout this report, there is a very strong
demand for the non-payment side of the mobile wallet.
Fifty-nine percent of consumers say they would have a
more positive view of retailers if they started to deliver
digitized mobile wallet content (e.g., loyalty cards,
offers/coupons, promotions).
The intersection of time, location and interaction are
foundational elements that differentiate mobile wallet
content from any other marketing tool available to
marketers. Leveraging time- and location-sensitive
content enables a powerful opportunity to interact with
consumers – to remind people when they are close to
your store; to retarget customers who have not used an
offer before it expires; promote time-dependent offers
that expire quickly, thus driving urgency. Because this
tool has endless possibilities, it is important to deliver
engaging content to consumers where time, location
and interaction are relevant.
Lastly, one of the most exciting capabilities of the
non-payment side of the mobile wallet is the ability for
retailers to create personalized content. Retailers can
send content tailored to each consumer based on their
preferences, behaviors, purchase history and more —
driving engagement, loyalty and in-store traffic.
Retailer impact of using
non-payment mobile wallet
How would your perception of a retailer change?
25% 34% 38% 3%
This would completely
change the way I view the
retailer in a positive way
This would make me like
the retailer even more
It would have no
impact on how I
view the retailer
It would
diminish or
weaken the
perception I
have of the
retailer59% positive
Base: Total n=1,000

7Survey findings
Thirty-three percent of consumers have used mobile
wallet for non-payment (e.g., storage of loyalty
cards, coupons, etc.) and 39 percent describe their
experience as “extremely positive.”
Because the non-payment side of the mobile wallet
is still relatively new, the redemption experience may
not be as smooth as it is with paper coupons. Retail
stores are investigating how to incorporate this new
technology and might not have the right scanning
equipment. In addition, staff might not be trained on
how to use mobile wallet content. The goal for retailers
is to create an in-store experience that makes using
the non-payment side of the mobile wallet as easy
as using a traditional coupon or loyalty card, but this
should not inhibit retailers from meeting consumer
demand for convenient mobile content stored on their
phone.
Adoption of the non-payment side of mobile wallet is
evenly distributed across income levels – 26 percent
for consumers with incomes higher than $100K,
21 percent for those between $75K-$99K, 25 percent
for $50K-$74K and 28 percent for those making less
than $50K.
Non-payment mobile wallet
usage & experiences
39% 41% 19%
1%
26%
No 67% Yes 33%
28%
25%21%
Extremely positive Somewhat positive Neutral/no impact
Somewhat
negative
Income <$50K
Income
$50K - 74.9K
Income $75K - 99.9K
Income $100K+
Base: Total n=1,000; users n=330
Non-payment usage Income levels
Non-payment experience
Do you use mobile wallets for non-payment
and what has been your experience?

8Survey findings
Many consumers look to mobile wallet technology to
receive deals and to make their lives easier. Among
the two-thirds of consumers who do not currently
use a mobile wallet, 50 percent say getting better
promotions/offers would influence them to try a
mobile wallet tool. Forty-four percent of these non-
users think a mobile wallet to store content such
as coupons and loyalty cards would enhance their
shopping experience.
The research indicates that the non-payment side of
the mobile wallet presents an opportunity to deliver
the ultimate shopping companion. Not only can
consumers receive exclusive offers and promotions,
but once the content is on their phone, retailers can
interact with that consumer through the mobile wallet.
Consumers can be alerted when an offer is about to
expire, when the content has been updated and even
to change the offer to improve redemption rates. In
addition, location-aware features of Passbook and
Google Wallet Objects alert consumers with a subtle
reminder of an offer or special event when they are
near their favorite retail stores.
Driving mobile
wallet adoption
50% 43% 25% 23% 23%
49%
No 67% Yes 33% 7%
44%
If I knew I would get
better promotions
and offers
If it would make my life
easier by organizing
things like offers/coupons,
loyalty cards, etc.
If I knew I would
get targeted and
relevant offers
based on my
past purchase
history and
location
If I thought
it would
enhance my
experience
with my
favorite brands
I am not interested
in trying a mobile
wallet tool
Negatively impact
Enhance
Would not impact
either way
Mobile wallet usage Perceived impact
What would influence you to try
Base: Total n=1,000; Non-users n=670
What would influence you to try a mobile
wallet and what impact would it have?

9Survey findings
There are many channels that allow consumers to
receive mobile wallet items. Email is the most
preferred method for receiving mobile wallet
content (46 percent), followed by a retailer text
message (20 percent).
Only 19 percent of consumers prefer to receive
mobile wallet content from an app. This indicates
that contrary to what many retailers and consumers
believe — that you need to have an app in order to
receive mobile wallet content — there are many ways
to deliver mobile wallet content.
When retailers think about distribution, they should
consider the audience and what is the easiest way to
deliver the content to them in order for them to take
action. Text is convenient because the consumer is
receiving that message on his/her phone, so there is
one-click access to getting that content into a
mobile wallet.
Mobile wallet
distribution preferences
46%
20% 19%
11%
4%
Email
Text message
from the retailer
App from
the retailer
Direct mail
Mobile banner
advertisement
How do you prefer to receive mobile wallet content?
Base: Total n=1,000

10Survey findings
Consumers would like to receive mobile wallet content
on a regular basis, with the majority of consumers
(55 percent) preferring to receive mobile wallet
content weekly.
This further validates the opportunity for retailers that
leverage coupons and offers to create a perpetual
coupon, which lives on a consumer’s phone and can be
updated automatically. In addition, it demonstrates the
importance for retailers to have a technology platform
that can manage and dynamically update content.
Instead of adding weekly mobile content from their
favorite retailers, consumers would only need to add the
content once, and it would be automatically updated
with new offers and promotions. The same is true for
retailers with loyalty programs that leverage exclusive
events and offers to drive in-store traffic.
As stated earlier in this report, consumers respond
favorably to content that is tailored to their preferences.
The more personalized the content, the more likely
consumers are to redeem an offer.
Mobile wallet
frequency preferences
How often would you like to receive mobile wallet content?
12% 55% 18%
3%
1%
12%
Daily Weekly Monthly
Quarterly
Annually
Never
Base: Total n=1,000

Embracing the mobile
wallet opportunity
5 tips to execute
successful mobile wallet programs
Being precise with the locations you put into your mobile wallet content is
important. There is a 100-meter range around the location point that will alert the
consumer that they have an offer waiting for them. Many brands have imprecise
location information. With location-enabled mobile content, you want the location to
be the entrance to the mall, the front door, or the center of your store.
The closer we get to real-time data from point-of-sale systems, the more power the
marketer has with their offer and the better the consumer experience can be. The
dynamic nature of the non-payment side of mobile wallet, coupled with real-time
redemption information, enables advanced programs where incentives can change
based on time, location, number of redemptions and even inventory.
Updating mobile wallet content drives incremental traffic from existing consumers
that intended to interact with your brand. Let your most loyal customers know
when you have new merchandise in-store, sales, events and more. Because of
the location-aware capabilities of mobile wallet, you are able to subtly remind
consumers when they are near your store.
Location
Time-sensitive
offers
Update your
mobile offers…
frequently
Here are five tips to help you execute mobile wallet
programs that drive engagement, loyalty, foot traffic —
and your bottom line.
This research shows that consumers are ready and
desire to take advantage of the non-payment side
of the mobile wallet. The good news for marketers
is that unlike other marketing programs that require
heavy investments in time, infrastructure, program
management and resources, getting started with
mobile wallet is easy. Build your strategy, select a
technology partner and get started. It’s that simple to
get started today!
We like to think of mobile as the ultimate form of personalized media. It can be
individualized to each consumer. If you are executing mobile marketing programs,
you should be collecting an incredible amount of data based on time, location and
interaction. Leverage this data to create personalized mobile wallet content for your
loyal customers based on their preferences, behaviors, purchase history and more.
Lastly, it is important to develop a predefined set of metrics to better understand
your brand’s potential with the non-payment side of mobile wallet. Although many
marketers are going to want to quickly get to market – and record stats as they
go — it is critical to first figure out how your brand is going to quantify results and
identify success. Bottom line – you have to measure.
Personalize,
personalize,
personalize
Measurement
and
optimization
11Embracing the mobile wallet opportunity

12Overview & methodology
Overview & methodology
The Vibes Mobile Consumer Survey was fielded by the
independent panel research firm Equation Research.
Responses were generated from a survey among 1,000
smartphone owners from their online opinion panel.
All respondents are age 18 or older and living in the
continental United States. The margin of error for the
survey is +/-3.1 percent.
Founded in 1998, Vibes is a mobile marketing
technology leader that helps some of the world’s
biggest brands acquire, engage and deepen
relationships throughout the customer lifecycle.
Vibes’ Catapult mobile relationship management
(MRM) platform enables brands, agencies and
media companies to launch a wide range of mobile
solutions. Vibes integrated mobile wallet capabilities
into Catapult right when Apple introduced Passbook in
September 2012 and has been at the forefront of the
non-payment side of mobile wallet ever since. Recently
named a “Cool Vendor in Mobile Marketing” by Gartner
Research, the company has delivered more than 3
billion mobile experiences on behalf of customers that
include Sears, Verizon, Allstate, The Gap, Tribune, Fox,
Crispin Porter + Bogusky, Gannett and the Chicago
Bulls. Vibes is one of only seven Tier 1 aggregators
with secure, direct connections to all the major carriers.
To learn more about Vibes, visit www.vibes.com or
connect on Facebook.com/VibesMedia or Twitter.com/
Vibes_Media.
About Vibes
Catapult is a cloud-based mobile relationship
management platform that enables direct marketers
to build deeper relationships with their customers that
drive revenue growth and loyalty. The foundation of
Catapult is mobile messaging and activation – text
messaging (SMS), push notifications and QR codes.
Catapult also offers strong capabilities for post-click
engagement such as mobile landing pages and
mobile coupons.
Catapult includes features for Mobile Wallet
Management that help marketers leverage the power of
Apple’s Passbook and Google Wallet Objects for mobile
offers and loyalty. Catapult’s advanced targeting and
segmentation capabilities enable marketers to create
closer connections with their most valuable customers
through smart, targeted mobile experiences. Learn
more about Catapult at www.vibes.com/platform.
About Catapult

vibes.com
312.753.6330 main
312.589.6960 sales
sales@vibes.com

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