With the given scenario where world is undergoing a digital revolution, businesses are ought to digitize various business activities. Digital wallets are yet another digital solution that drives the financial transactions of most businesses today.
MasterCard found out the growing usage of mobile wallets, whereas the American Express survey represents that despite security concerns involved, digital sales are still rising. Thus, it becomes imperative to note digital wallets and discuss their benefits to help businesses increase their sales.
1. Effortless spending
Digital wallets have revolutionized the way customers make a purchase. It has become so effortless that customers don’t have to carry their wallets or purse and worry about change anymore. The steps between want and own have reduced considerably. Customers carry their smartphones, make a purchase, enter the amount to be paid and walk away! No need to confirm a purchase to the cashier. It’s that easy.
2. Simplified loyalty programs
Businesses are opting for digital wallets to simplify loyalty programs. The Digital Wallet business model is trying to combine all the elements of loyalty cards into a single tap. However, with existing wallets, loyalty programs are benefiting businesses considerably.
For instance, the retailer wallet of Starbucks provides various features like coupons, rewards programs, custom marketing etc. However, their loyalty program helped its mobile app accounting for 25% of total in-store purchases.
3. Effective use of mobile apps
Digital wallets are best at offering an omnichannel customer experience. They facilitate the effective use of mobile apps.
As consumers spend most of their time with smartphones, retailers can use this to their advantage. The mobile applications offer easier browsing, suggest the right products, offer rewards and simplify the purchasing process.
4. Ease and convenience
With an easier and more convenient payment interface, the customer experience has improved to a great extent. Digital wallets are able to do this by accelerating the checkout process both online and in-store.
Moreover, customers can quickly pay for their purchase on your eCommerce site. Thus, customers can securely checkout without leaving abandoned shopping baskets behind.
ONPASSIVE’s digital mobile wallet application, O-Wallet is coming forward as an easy and secure interface for all your transactions online.
5. Not just payment options
Businesses can also get innovative with their digital wallet services and offer other perks instead of just payment options. That includes notifying customers about an expiring coupon, store loyalty cards, offer rewards, coupons, tickets, gift cards, and boarding passes etc.
Many established brands offer exclusive deals to their customers through digital wallets. For instance, Samsung Pay offered quadruple points for all transactions during the 2016 holiday season.
We can’t say yet that digital wallets are full-proof and won’t incur any security concern. However, they are becoming very secure as they don’t use credit card numbers for transactions. Instead, token number-15 to 16 digit number that looks like credit card numbers are used. This implies that even if they are stolen, they won’t be of any value.
If a customer registers his card, the information is stored in a token vault. The service provider manages it. This reduces the chance of any potential attack.
If you ever lose your device by any chance, you don’t have to worry much. You can de-register credit cards from your mobile provider account.
7. Larger customer base
The young generation today is more easy-going with advancing technologies. Digital wallet is no exception. One study has found out that one in every four millennials carry less than $5 cash with them. Thus, businesses have a larger part of demographics that uses digital wallets regularly. Thus, it will be a practical move to opt for digital wallet technology and improve sales.
With the digital revolution taking a surge worldwide, it is inevitable for businesses to opt for digital solutions. Digital wallets are gaining popularity with the kind of ease, convenience and secure interface they offer. With growing smartphone users, the importance of digital wallets only gets highlighted. Thus, if you are a growing business and wants to sustain longer in the market, digital wallets are a must!