User Experience: The Neiman Marcus Mobile Wallet

Navigator Edition: June 2015
By: John Grund and Allison Brenner

In February 2015, Neiman Marcus and Capital One launched a mobile wallet within the retailer’s pre-existing iOS “NM” app. This enhancement allows customers to pay for in-store purchases at Neiman Marcus or Bergdorf Goodman via a QR code, similar to the Starbucks payment app.

We identified several relevant features through in-store testing and research:

  1. The mobile wallet can store the proprietary Neiman Marcus or Bergdorf Goodman store cards in addition to multiple third party Visa, MasterCard, or American Express cards.
  2. If a user already has a Neiman Marcus online account, the digital wallet is pre-populated with all card credentials on file from the existing account.
  3. The app requires users to create and use a secure PIN each time they make a transaction, which is different than Starbucks (no requirement) and ApplePay (default option is fingerprint recognition for capable iPhones).

Although the mobile wallet itself does not have transaction history or a digital receipt, a receipt is emailed to the customer as well as printed. At the time of our field testing, there was no messaging or promotional material on either receipt except a banner ad on the bottom of the email version.  For users who prefer to shop in the app as opposed to in-store, the checkout process mimics that of an online purchase and the new wallet format is not utilized.

In other recent news on the digital payments front, Neiman Marcus now also accepts MasterPass for online and in-app purchases. MasterPass is a digital wallet designed by MasterCard that allows for quick checkout by storing payment, loyalty, and shipping data.  Select bank partners offer this service to customers. The launch of the NM Mobile Wallet coupled with the addition of MasterPass shows how Neiman Marcus is enhancing the checkout process for its consumers in all channels.

Given the early stages of the NM Mobile Wallet rollout, signage and advertising for this new feature has been somewhat limited.  However, with a solid foundation in place, we expect the wallet to evolve and integrate other exciting elements of the full shopping experience across channels.  The real difference (and value) between using the physical card and the mobile wallet will be a function of what Neiman Marcus adds to the wallet to personalize and enrich the customer experience.

Figure 1: Neiman Marcus Mobile Wallet Experience

Figure-1_-Neiman-MasterPass_v2Source: First Annapolis Consulting research.

For more information, please contact John Grund, Partner,; or Allison Brenner, Analyst, Both specialize in Credit Card Issuing.

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