Enabling Technologies

Digital Couponing to the Rescue of Mobile Payments

MEDICIFounder and Chief Strategy & Innovation Officer

Millions of coupons are used at retail stores month after month. The inefficiency in executing paper coupons combined with consumer mobility is forcing the players to go digital.

With growth in redemption volume for digitally discovered coupons exceeding 200 % annually, is the paper coupon dead?

What role will mobility play in this segment?

There are traditional coupon players going digital and several start-ups and a number of wallets of course…who will win this race?

According to a research report, there are around 560 Mn mobile coupon users and the number is expected to rise to 1.05 Bn by 2019. In U.S. alone, the number of digital coupon users had surpassed 103.5 Mn back in 2013. In U.S., 49% of smartphone users and 10% of tablet users have used mobile coupons.

digital coupon usa

Source: Statista

Knowledgefaber, a payments and commerce focused research firm predicts that digital couponing would grow at a double digit CAGR driven by the mobile channel. Going forward contextual coupons based on location, buying pattern, in-store analytics would become very popular and would be linked to mobile payments for instant purchase added Knowledgefaber.

Here are some more examples of digital coupons delivered through various channels:

  • The Coupons App, a popular mobile couponing app can be used in a massive variety of places, including retailers, restaurants and fuel pumps. The app provides fresh offers in real time, allowing users to seize upon great deals before they’re gone. The app also integrates social functions, text message deals and a barcode scanner that is invaluable when it comes to comparison-shopping. The Coupons App offers the functionality of several different apps in one — making it one of the go-to choices for any serious coupon user.
  • There was a promotion campaign which Coca-Cola did called “Tweet-a-Coke”. The Twitter based campaign allowed links to be tweeted, which when opened, allowed the recipients of those tweets to order a Coke at Regal Cinemas locations. To avail the order, users just needed to authenticate using their Twitter account and also provide credit card information.
  • Another example could be that of Starbucks which did a beta program back in October 2013 using Twitter. The campaign simply allowed Twitter users to buy $5 gift cards to send coffee to friends.

One of the best places to hear more about this topic is at The Money Event, on Sep 9th, Sep 10th and Sep 11th. You can see the entire agenda/ program here

Don’t miss listening to this amazing conversation that will take place at the Money Event. This session is called “MM1: Digital Couponing to the rescue of Mobile Payments”. The amazing group of speakers for the session are:

  • John Caron, Former Head of Marketing, Catalina
  • Greg Kerr, CTO, Inmar
  • Bruce Sattley, SVP Product, Coupons.com
  • Walter Chen, CEO, Passbee Media

Amit Goel

MEDICIFounder and Chief Strategy & Innovation Officer

Amit Goel is the Founder & Chief Strategy & Innovation Officer for MEDICI. Amit’s vision is to build a strong FinTech market network that involves financial institutions, banks, startups, investors, analysts & other key stakeholders across the ecosystem – helping each one of them in a meaningful way by removing the asymmetry of information and providing a platform to engage & transact.

Amit is passionate about bringing actionable FinTech-focused insights, innovative products & services for the FinTech ecosystem. Some of his work involves startup scores, bank scores/assessments, predictive viewpoints & other innovations that have helped MEDICI’s customers and the ecosystem. He has been named amongst the Top 100 FinTech thought leaders/influencers in the world & Top 10 in Asia multiple times by reputed agencies, consulting firms as well as financial institutions. Amit has built MEDICI (formerly LTP) as a new-age, tech-enabled advisory/research firm, which is now considered the #1 global research & innovation platform for FinTech in the world.

Amit has been writing pioneering viewpoints on financial technology space that have been ahead of the curve since 2010. His data-driven predictions have helped the customers as well as the ecosystem. His past work experience includes a strong background in strategy & market analysis and advisory to clients (from big business houses to Fortune 500 firms) in payments, commerce, financial services & IT/technology. In the past, Amit had also founded a successful consulting & research practice called GrowthPraxis and has worked at Boston Analytics, Frost & Sullivan, and Daimler Chrysler in strategy & research.