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Since launching Walmart Pay in early July, Walmart has been struggling to get its customers on board with the app—an issue that hasn’t been as big a problem for other chains.
Recent research shows that 5.5 percent of consumers would use the Walmart app in the next 90 days, according to Forbes. That percentage is much less than the adoption rates of other mobile payment apps developed by companies such as Starbucks, CVS and Taco Bell, Forbes reports.
So why is Walmart struggling to get people to use its payment app?
The article from Forbes identifies the following benefits that the Starbucks, CVS and Taco Bell apps offer that Walmart Pay doesn’t, likely reducing the effectiveness of Walmart’s app.
- “Pay and Earn”
Directly linking a mobile payment app to a rewards program encourages the customer to use the app. Forbes uses Starbucks as an example. Instead of visiting a variety of coffee shops throughout the week, a customer will make all purchases at Starbucks to get free coffee and food.
- “Frequent Visits a Must”
Starbucks’ and Taco Bell’s apps are successful because customers can conveniently use them daily, Forbes says.. The Starbucks app simplifies coffee drinkers’ daily routines by motivating them to only shop at the chain’s locations. The Walmart app is less useful because shoppers don’t typically have reasons to visit the big box daily.
- “Fringe Benefits”
Successful mobile payment apps offer customers more than payment options, according to Forbes. For example, CVS Pay offers users the option to manage prescription refills via the app and Taco Bell customers can use the app to order takeout ahead of pickup. The convenience the apps offer encourage further use.
