Monday October 13th, PayPal will be running a 1 Cent Coffee Day. Yes you heard right – all day customers with the PayPal app will be able to go to participating PayPal venues in and around the Melbourne CBD to buy a coffee for 1 Cent.
When this same promotion was run in Sydney earlier this year, thousands of coffees were sold as new venues signed up with a PayPal account and new customers downloaded the PayPal app on their smartphones. PayPal also ran some post promotion analytics that resulted in ongoing repeat business for 50% of the sites who participated in the promotion.
From a vendor’s point of view, the PayPal integration is at times a more secure alternative to the traditional bar tab, where many establishments have been ripped off with fake cards and the like. Also factoring in the changes put in place on AUG 1st whereby consumers have been required to exchange PIN for signatures. Solutions like PayPal presents a seamless payment option for both operators and customer alike.
PayPal believes that beyond security and convenience, the system provides a new kind of dialogue between customers and vendors. The additional benefit for the retailer is that they are presented with the consumer’s name and their photo by the customer “checking in” to your venue through their PayPal App. The customers’ photo then pops up on the screen enabling an operator to build a relationship with the customer. A premium built in customer loyalty program.
There have been rumors of cash money’s demise for years and as a result the rise of the digital wallet is finally upon us. ATMs have been in the market for some 40-odd years, however only last year we saw the reduction in withdrawals for the first time. Cash was used in 47% of all transactions in 2013 compared to 69% in 2007 (Fairfax Media). For a consumer, getting three bucks out of your pocket, is convenient. A credit card is equally convenient. But if you can create a two-way dialogue between the consumer and the operator, then that is where you have a sweet spot where the magic happens.