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Insights and Expertise
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No cash, no card, no personalized offers. Nine percent of Americans aged 18 to
25 and 73.7 percent of those aged 26 to 40 make payments
problem: The mobile using digital wallets, compared to just 30 percent of those
over 57 (see https://bit.ly/43KNYSv).
wallet wave in Reduced cash handling can lower transaction costs for
retailers. Also, by shifting away from traditional card
networks, some convenience stores can reduce interchange
convenience retail fees and improve operational efficiency. Additionally,
the data collected from mobile wallet transactions can

By Elie Y. Katz provide insights into consumer behavior, allowing
for more targeted marketing strategies. Integrating
National Retail Solutions (NRS) mobile wallets with loyalty programs enables retailers
to offer personalized promotions, increasing customer
ash is getting benched, and plastic is losing its engagement and loyalty.
shine. Mobile wallets are becoming the go-to Challenges and future outlook
payment method, especially in convenience
C stores where every second counts. Shoppers Despite the positive momentum, there are challenges
want speed, retailers want efficiency and digital payments to overcome. Not all consumers have fully transitioned
deliver on both fronts. With a quick tap, checkout lines to digital payments; many, particularly older or more
move faster, loyalty perks land instantly and the need for vulnerable populations, still rely on cash. Retailers must
physical wallets keeps shrinking. balance the efficiency gains of mobile wallets with the
need to remain inclusive.
Factors driving mobile wallet adoption
1. Convenience and speed: Consumers appreciate the Ensuring robust security and privacy for digital
ability to complete transactions swiftly without han- transactions remains critical, as consumers are wary of
data breaches and unauthorized access. A PYMNTS study
dling cash or cards. A recent SmartDev report indi-
cated that 80.6 percent of digital wallet users in the found that 85 percent more consumers use mobile wallets
to pay bills than to pay merchants through QR codes and
United States prefer them due to their speed, and 76.9
percent due to their overall convenience (see https:// NFC tap to pay, indicating a slower adoption rate for in-
store payments (see https://bit.ly/4bSIdUR).
bit.ly/3XPurg2). This preference aligns well with the
fast-paced environment of convenience stores.
Advancements in technology, such as improved near field
2. Health and safety considerations: The COVID-19 communication systems and enhanced app integrations,
pandemic heightened awareness of contactless pay- are expected to drive mobile wallet adoption in
ment methods. Mobile wallets enable tap-to-pay convenience stores further.
transactions, reducing physical contact—a feature
that has become increasingly important to health- As these systems become more reliable and ubiquitous,
conscious shoppers. This shift has particularly ben- convenience stores will likely continue evolving into
efited convenience stores, which aim to provide safer digital hubs, offering speed, convenience and personalized
shopping experiences. services. Moreover, the global digital payments market is
expected to reach $14.79 trillion by 2027, with a compound
3. Integration with loyalty programs: Many mobile annual growth rate of 11.79 percent from 2023 to 2027,
wallet platforms seamlessly integrate retailer loy- indicating significant growth potential.
alty programs, offering personalized discounts and
rewards. This integration enhances the customer ex- The rise of mobile wallets in convenience stores is
perience and encourages repeat business, allowing reshaping retail convenience, offering a more efficient,
stores to engage directly with consumers through secure and customer-centric payment experience. This
digital offers. For instance, Starbucks effectively uti- trend is fueled by consumer demand for convenience,
lized its mobile app to combine payment and loyalty the need for contactless transactions in a post-pandemic
features, resulting in a significant portion of its trans- world, and retailers’ drive to lower costs and boost
actions being conducted via mobile. customer loyalty. As technology advances and consumer
preferences evolve, mobile wallets are poised to become
Benefits for consumers and retailers integral to the convenience store experience.
Mobile wallets streamline the checkout process for Elie Y. Katz is founder, president and CEO at National Retail Solutions
consumers and eliminate the need to manage physical (NRS), https://nrsplus.com. Contact him by phone at 201-715-5179 or
wallets. Younger demographics, particularly Millennials by email at ekatz@nrsplus.com. Five essential skills for success in the
and Gen Z, are quick to adopt these technologies, favoring payments industry
apps that combine payment functions with rewards and
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