The digital wallet landscape is growing fast — and changing rapidly. Whether your business is already profoundly committed or just analyzing offering wallet payment access, building the right digital payments strategy involves an array of decision points that can make a significant impact on your level of success. Choosing the correct digital payments processing partner may never be more crucial to your bottom line.
Today’s consumers want to buy whenever, wherever, and however, they want to — from merchants they can trust and with the least amount of friction. Digital wallets answer the requirement. They are swift, convenient, and give their consumers more power to pay and earn rewards, boosting loyalty. They can work at In-App and e-commerce through consumers’ electronic devices. And they are growing in new and unexpected ways, from wearables to connected homes to automobiles.
Mobile e-commerce continues to have positive year-over-year growth, similar to desktop e-commerce. Smartphones allow faster, more convenient transactions, including tap-and-pay checkout at participating merchants. They also add innumerable users to the mobile wallet base as underbanked portions of the population become lucrative, and new consumers who can boost sales and drive growth. The purpose is clear. Merchants must be actively ready to adjust as new channels emerge.
The new digital economy doesn’t spell an end to the brick and mortar retail. It requires the merchants to deal with emerging challenges, most of which they have never considered before. This is the potential for cost-savings and business growth opportunities. Here are things to keep in mind before launching your digital wallet.
Related: Why Retailers Should Have Their Own Digital Wallet?
1. Solve cart abandonment:
The average online cart abandonment by shoppers is at 70 percent. The reasons are many. For example, 37% of people who don’t buy say they didn’t want to create an account. 23% didn’t trust the merchant site’s security. 25% of the buyer’s preferred method of payment wasn’t offered. Digital wallets can resolve these concerns and more and have been shown to enhance shopper conversion rates by three times.
2. Enhancing fraud and breach protection:
Because wallet technology allows the tokenization of payment credentials, consumers and merchants both are better protected from fraud, especially in the case of significant data breaches.
3. Potential lower acceptance costs:
Credit card processing and exchange fees can negatively impact many factors that select wallet technology can improve.
Merchants must also consider the cost savings that can be achieved by preventing the need for printed coupons and receipts and print advertising.
4. Driving business growth:
Card-on-file payment acceptance is proven to inspire more purchases. More than a third of the consumers who save cards said they make purchases more often. Consumers are more connected now than ever. Hence, no merchant should ignore digital wallets today.
Which wallet to choose:
Look for a provider that allows the types of payment features that can be extremely valuable in encouraging adoption and usage for your business. Among them: order-ahead ability, shopping list storage, auto-order, promotional offers, and pay at the hotel in the hotel industry. Merchants who rely on loyalty programs and points require a wallet that can easily integrate with the existing program and allow barcode photo-capture and pay-with-points. In addition to the feature of accepting both credit and debit cards, the availability of gift cards, private label cards are another consideration.
The importance of phone hardware or software cannot be undervalued. Many businesses will need more than one wallet, as most of the digital platforms do not support both Android and iOS operating systems.
Don’t forget about POS:
Consumer’s desire for swift checkout is fueling the growth of contactless payments at the Point of Sale. Tap-and-pay demands the ability of near field communication (NFC) and QR code access, are the features not all wallets can deliver.
As digital wallets develop, new providers will emerge, and new markets will be ready to embrace the technology, the choices will only increase and, along with them, design decisions will become more complicated. Finding the right balance that will optimize your investment today and into the future is the ultimate key.
The result of the commitment is our development of a simplified and much more flexible digital application programming interface (API) that allows you to:
- Enable the current top wallets, including Google Pay, Paypal, Apple Pay, Visa Checkout, and Samsung Pay.
- Allow checkout options for mobile and desktop devices as well as in-app checkout for mobile users with specific wallets
- Track customer’s wallet usage and trends with advanced reporting
- Reduce the operational load by automating certificate renewals and reminders
Most importantly, our API future-proofs your digital payments system by incorporating seamless upgrade capability to support.
ONPASSIVE platform’s revolutionary, global standardization methodology builds a smooth and consistent checkout environment for digital transactions, regardless of device, and provides secure payment acceptance for both consumers and merchants. Remember choosing the right partner makes all the difference.
Related: Why Retailers Should Have Their Own Digital Wallet?
Stevon Lewis
4 years ago