The e-commerce industry has the changed the way people shop for their favourite stuff. Whether it is apparel or grocery, every item can be purchased online and delivered at the doorstep. Earlier the only way to make payments on the e-commerce website was through the credit or debit card.
Worried about the security of these transactions through the credit card, people are sometime reluctant to use their cards online for transaction. Those, who have been the victim of phishing attack on their cards, are even more wary of using credit and debit cards for online transactions. With the emergence of mobile/digital wallets, the online payment has experienced a paradigm shift.
What Is a Digital Or Mobile Wallet?
A digital or a mobile wallet is a payment service where the customers can pay for a wide range of products and services both online and offline using the mobile device. Instead of using a credit or debit card, the user makes use of a wallet app installed on the mobile phone to make payments. It is an easier, secure and more convenient What is a Digital or Mobile Wallet? way to pay. The technology to support this mode of payment has become popular only recently.
Some of the big players like Google and Apple have their mobile wallets in place. Digital wallet makes use of the NFC (Near Field Communication) to make payments at shops just by waving your mobile phone at the payment terminal. You do not need to carry all your cards and even remember a coupon code to get discounts. Some of the digital wallets apply the best discount for you before making the payment.
Some Striking Features Of a Mobile Wallet
- Mobile wallet services are neatly folded into your mobile device and all you need to do is to keep your mobile phone handy while making payments.
- Mobile wallets are secure and it is easy for you to track your payments.
- It is quite easy to make payments as you do not need to carry different cards with you all the time.
- Big players like Apple, Google, and Samsung have forayed into the mobile wallet industry making it grow fast.
- Apart from the payment capabilities, features like driving customer loyalty and sales have made mobile wallets so sought-after in the industry.
Mobile wallets let the customers make payment without any hassle of carrying credit cards and entering the details every time they need to pay online. When you register your card with the wallet once, you just need to tap the application to pay. As it is secure and makes the process of payment, fast and convenient, it has come up as a new mode of payment both online and offline.
Facts and Figures About Digital Wallet
The adoption of mobile wallet among the users is on the rise but it has not become mainstream yet. However, the trend indicates that with passing time, it will be accepted on a larger basis.
- The value of proximity payment transaction has reached to more than $2 billion as of now.
- The e-commerce transaction value also shows acceleration and is estimated to reach $5 billion.
- More than 15% of the internet users in the USA have made payment through mobile wallet and 56% are looking to follow the suit.
- The total value of mobile payment in the US is expected to reach $145 billion by 2019.
Its Impact on the E-Commerce Industry
The growth of e-commerce has been unprecedented over the recent years. With the launch of mobile wallet service from established tech giants, e-commerce industry has also been on the positive side of the outcomes. As the statistics suggest, people are preferring the payment through mobile wallets while buying merchandise from the various e-commerce stores. In the developing countries in the Indian subcontinent, the mobile wallet service has also created quite a buzz. By offering cashback to the users, these mobile wallets have made a place in the e-commerce industry and growing along with them.
The future of mobile e-commerce looks promising with mobile wallets. With the integration of these wallets into the e-commerce apps, paying for anything online will be possible with just a click.
Other Impacts on E-Commerce
- Effective Customer Loyalty Program Boosting Sales
Every business aims to achieve customer satisfaction as it leads to better sales and brand establishment. With mobile wallets, you will be able to offer customer loyalty programs that will translate into increased sale. You can club the loyalty program and the discounts within a single mobile experience with a mobile wallet.
- Better Tracking of Customers
When you track your customer activity, you get a clear insight of their purchasing trends . By keeping a tab on the customers, you can predict the sales of particular product and make sure that your inventory has a stock of those items. You can also come up with exciting offers once you understand the preferences of the consumers.
- Faster Checkout Resulting in Better Sales
When the customers use mobile wallets for payments during the checkout, the entire process is fast. This not only helps in enhancing the user experience but also lets you cater to more customers in the same time period. If the checkout is faster, the users will surely return to the e-commerce website or the app.
Closing Thoughts
Mobile/Digital wallets are undoubtedly the future of payment. It is hassle-free, secure and beneficial for both customers and the vendor. With many big enterprises foraying into mobile wallets, we can expect the service to become even better with time. Newer technologies are likely to strengthen the service and make it more secure and user-friendly.