Cash is losing ground to new alternatives that bring technological transformation and new means of payment.In more developed countries, such as the United Kingdom, the use of debit cards already exceeds the cash option. More and more people believe that paper money will disappear, and they even dare to put a deadline: 2026, at the latest.
This trend is precisely what marks the direction of the financial sector globally. The emergence of virtual wallets, digital banks and electronic media -in addition to the growth in the use of cards-, prompted a new generation of companies that is very clear about where to aim: to eliminate the friction generated when "going through box".
According to a study by the consultancy firm Minsait, the use of virtual wallets is growing at an accelerated pace every year. New technologies are being imposed on traditional collection methods.
Moreover, Argentina is a benchmark in this area: it leads the regional table with a penetration of 48.6%, followed by Mexico (47%) and Colombia (44%), while in Brazil and Peru the percentage is around to 25%.Digitize the money
In this framework, it is logical that companies want to quickly reconvert to stay with a good part of this business, from the development of their own payment platforms.
Nor is it surprising that before this notorious advance of electronic wallets, the large international companies appeal to marketing "4.0" to strengthen purchases at their points of sale.
Starbucks is a clear example of this transformation. The chain launched "Starbucks Reward", with the aim of strengthening its link with users through a loyalty program and rewarding them with "personalized" actions.
"At Starbucks we are constantly looking for innovative ways to interact with our customers, which is why we launched Starbucks Rewards, our loyalty program to reward frequent consumers according to their tastes and preferences," explains Federico Bonino, Marketing Manager at iProUP. of the company for Argentina and Uruguay.With this app, the firm says that "it has the opportunity to develop the full potential of the Starbucks Rewards program and continue reaffirming the commitment to meet the changes in demand", in addition to adapting to the new market needs.
But, why a person decides to pay with this system instead of opting for some traditional method? According to the executive, this platform targets those seeking "trend and innovation", since from their cell phone they can monitor and manage all aspects of their account, with the convenience of acquiring products without cash.
"This functionality speeds up your visit and raises your experience," adds Bonino. Specifically, the app offers you the possibility of:
- Pay from the application in your favorite stores
- Register as a member of Starbucks Rewards
- Check your "stars" (points) and available benefits
- Recharge and manage all your Starbucks Cards
- Visualize your available balance and the detail of your movements
- Access a store search engine, receive program news and special promotions
In addition, those who adhere can pay with their Starbucks Card, a prepaid card card not linked to any bank, and accumulate "stars" each time they consume.Better use my wallet
A report by Red Link highlights the historical record of the use of digital money: during 2018, 33% of the total transaction funds of the private sector was "electronic", against 29% registered the previous two years.
With market knowledge and in line with global trends, the delivery startup Rappi recently integrated the RappiPay virtual wallet into its application.
The new product, which is already available in Argentina, Mexico, Colombia and Brazil, does not function as an independent platform but is integrated into the app. It allows sending money between users, paying for food and even paying in physical stores.Natalia Russo, leader of RappiPay in Argentina, explains to iProUP that this system works based on credits that can be loaded with traditional methods, such as cards and collection networks, to make purchases.
"This does not change the Rappi model, but we are exploring new ways to add value to users," says Russo. And it confirms that this functionality is "the big bet for 2019" of the company.
Strictly speaking, the business of this proposal is to charge a commission for each operation. The move revolves around diversifying revenues, which currently come mainly from its delivery service.
Likewise, it will promote a bonus strategy in which "gifts" will be delivered to the stores when an operation is carried out. "It may be that with the purchase of a coffee you get a bonus product," anticipates Russo.
In this context, he adds that they will use the "cashback" strategy, through which users will receive credits for their expenses that can be used to request a delivery and at the physical points adhered to."Our business model is to provide added value through an app that accompanies our customers, which is why, at least for now, we do not want to turn to the financial sector," says Russo. The executive confirms that the company opened its first subsidiary in the country and constituted RappiPay Argentina as a public limited company.
For his part, Matías Casoy, responsible for Rappi, assures iProUP that 60% of the collections received by the firm correspond to transactions made with a credit card.
While this varies according to the city in which the firm operates, the manager says that "there is a growing trend to make card payments for the convenience of no money exchange."
Regarding the operation of the Rappicréditos, Casoy emphasizes that all the actors involved receive the funds that correspond to them and the company absorbs the cost, since it is a marketing initiative "4.0" to retain customers or attract new ones.March a beer and a hamburger
The growth of startups offering digital financial services is surprising. In fact, according to the Argentine Chamber of Fintech, companies in the sector grew at an annual rate of 110% in 2018. And this has just begun.
"Worldwide, 20% of the payment market is now of the fintech, but the one of the loans still belongs mostly to banks," says Francisco Nelson, director of digital transformation at Axxon Consulting.The executive explains that "faced with the 'threat' that represents the sector, the different industries make transformations in their structures, processes and products to digitize them in their majority".
One of the highlights is McDonald's. With more than 37,600 restaurants in 120 countries, the company was forced to reorganize to "avoid unnecessary expenses" and turn their business to improve the customer experience, expand delivery alternatives and, how could it be otherwise, offer orders and mobile collections.
From your app, users who want to taste a hamburger can order it in advance and pay for it through a card that is associated in the app. The benefits? differential price and shorter waiting time.
For now, the service is only available in the United States, although the McDonand's Argentina application allows you to exchange discount coupons and pay with QR through Mercado Pago.
Cervecería y Maltería Quilmes is another one that is going through an integral transformation in its structure. In fact, he began to "digitize" the classic process of returning the packaging. Quilmes VALE is the first card that can save virtual containers and "carry them in your pocket".
Its operation is simple: customers take the bottles to the adhered trade, which is converted into a credit that is loaded onto a card that can then be used in the adhered businesses. Obtaining it is free and works for both the Quilmes brand and Brahma and Stella Artois.
"We work on a path of digital transformation, with new products and innovative, simple and agile services that simplify the lives of consumers, this system replaces the classic paper delivered by the grocer," explains Giannina Galanti Podesta, director of the Quilmes brand. iProUP.He adds: "At the moment, we are taking this first launch as a learning stage in the virtual storage of packaging."
Looking to the near future, the company seeks to closely monitor the operation of the card with the aim of finding new opportunities for improvement and take it to other cities, in addition to Mar del Plata, where it began its journey.
Whether to buy a hamburger, order a beer, order a delivery or have a coffee, the companies are pouring benefits to their app. And, to the extent that users use the cell phone more, marketing "4.0" is getting stronger and stronger in Argentina.