Mobile pay apps were not around when Route 66 was in its heyday. But now Phillips 66, and related brands Conoco and 76, have partnered with P97 Networks to offer a mobile payment app with integrated features as the following article from Store reports.
Today’s consumer is focused on speed, convenience and value. As a result, the number of retail transactions happening through mobile devices is growing — quickly. According to survey data from market research firm Packaged Facts, nearly 30 percent of consumers made a mobile payment in 2017, up 50 percent from 2016.
Given this trend, bricks-and-mortar retailers are focused on delivering mobile payment capabilities. While the entire market is moving in this direction, fuel retailing is quickly catching on to consumer demands. Historically, the fuel retailing market has been slower to respond to advances in payment technology. In 1994, only 13 percent of convenience stores had pay-at-the-pump technology, according to the National Association of Convenience Stores.
Seeking a way to improve the fuel transaction for customers, Houston-based integrated energy company Phillips 66 recently introduced a mobile payment system for its network of 6,800 branded retail locations.
Jim Macari, director of innovation for Phillips 66, says 90 percent of the company’s branded retail locations, under the Phillips 66, Conoco and 76 banners, will be accepting mobile payments by the end of the year. “Our goal in developing our mobile payment solution was to make it easy and low cost for our branded customers to implement,” Macari says. Most branded retailers already have the electronic point-of-sale hardware systems that allow for mobile payments.
Gas stations and C-stores are becoming a sweet spot for mobile payment apps. These verticals are ideal for fast stops and frequent visits by time-strapped drivers. Mobile apps that integrate features such as loyalty and customized marketing offers also drive a higher level of user adoption. Note that the ACH payment routing saves money for the retailer as well—something that gas stations along the old Route 66 never had.
Overview by Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group
