We’ve all been there: you get to the cash register to search through your bag to find your wallet. Once you search it, then you have to rummage it to find the credit card you want or amount of cash. It feels like we have been doing since forever. But time has changed and from now onwards, we don’t have to take this much stress and waste time. With a digital wallet, everything is easy and cashless. Don’t know what a digital wallet is or how it works? Then you’re in right place.
Digital wallets have been used for the last few years and no wonder thousands of people are using them. Before the pandemic, 50% of shoppers were using them. According to recent research, digital payments to hit $6.6 trillion in 2021, a 40% rise in the last two years. The numbers are increasing over time. After all, there are plenty of reasons why you don’t want to use cash after post-Covid-19. It is clear that digital wallets are now emerged to change the way we pay for goods and services, isn’t it?
We can order anything from the home or office without stressing about credit card details to enter. In this article, we will help you understand the fundamentals of digital wallets, the rise of digital wallets in eCommerce, and the benefits of using digital wallets.
What is Digital Wallet?
A digital wallet is a cashless process to do all kinds of transactions whether it’s credit cards, tickets, or coupons. The purpose of the method is to go cashless and to reduce the burden of carrying credit cards everywhere and every time. Digital wallets can be stored on your Android phone. iPhone or other smart devices like an iPad. You can make use of digital wallets in physical stores, online, within apps.
Here are some of the best digital wallets available in the market with the competitive advantages they are offering to the merchants.
- Trust and Security
- Great Convenience
- Mobile Optimization
- Great ROI
- Easy to Set Up
- Improved checkout Flow
- Better privacy and security
- Reduce card abandonment
- Quick Checkout
- Audio-based QR system for transactions
- Multiple payment options
- One-touch checkout
- Fraud prevention
- Payments tracking
- Get paid faster
- Supports 25+ currencies
How Does a Digital Wallet work?
A digital wallet works in a very simple way. All you need to first is to install the software on your device or access it through online platforms. Then, you have to create an account by adding personal detail, payment details, and other verification information that’s needed
After that, the only thing you need is to get confirmation from the bank about payment details and start using your digital wallet to make payments online wherever you want to with a single tap.
Advantages of Digital Wallets for eCommerce Store:
It’s not just a simple process that retailers and merchants are giving to their shoppers a convenient payment option, but also providing many other benefits. What are the benefits do digital wallets offer the eCommerce store and their customers?
1. Enhance Security and risks:
In the last few years, eCommerce stores have been attacking by high-profile data breaches at large merchants. According to a study, the average cost of a retail breach is $4 million with a huge impact on long-term sales. There’s a need for an extreme level of security in the business.
Therefore, having a digital wallet can be a wise decision. As it’s the most secure online transaction method to date. Now you no longer have to worry about being attacked by hackers or even targets.
2. Decrease Cart Abandonment:
The most important benefit to retailers is decreased cart abandonment leading to more profit. By utilizing the simple and easy buying process, more buyers will complete their purchase. According to a Statista survey of shoppers who abandoned their cart, 21% of people think that the checkout process was too long or tiring.
3. Entice customers and boost sales:
You no need to anything while incorporating digital wallets into your eCommerce store. Because you can send customized coupons that customers can purchase and use. Also, you can stay in touch with customers by offering new deals and discounts. This way, customers can access the coupons and pay using the same device and that will help you boost sales.
Retailers or merchants who enable digital wallets can see the big change in increased conversions. It’s a way to make secure, one-touch payments. Many other benefits of digital wallets on the eCommerce platform include:
- Easy to install with a few clicks
- No need for coding
- Local and International payment options
- Mobile optimized for mobile buyers
- No transaction fees
- No penalties for third-party apps
4. Enhance experience and Engagement:
This is one of the great benefits people can avail and store owners for their eCommerce store. Since not having to carry a bulky wallet or pursue all the time, here are some of the best benefits to shoppers:
Shoppers can experience extreme security in digital wallets compared to a credit card. They just need to remember the pin number to get into the phone and the pin that is required to access the digital wallet. That’s how they can experience the best and safe method of transaction.
Also, shoppers can manage payments and their accounts from within the digital wallet. Store owners can send the bill in the form of a coupon. The digital wallet stores all receipt and account details. With a digital wallet, shoppers can get better management of their money with instant information and notifications.
Another benefit a digital wallet offers the retailer is the platform it provides to communicate with customers, build a good reputation, long-lasting loyalty, and enhance clientele. ECommerce store owners can customize a wallet to attract their brand proposition in the way it engages with customers and the service it provides, including discounts and holiday sales.
Hence, there’s no doubt that the engagement rate will improve and that’s how brands can make sure that digital wallet is a powerful use than other methods.
Hence, it is clear that a well-executed digital wallet deployment can deliver enhanced payment security, reduced transaction fees, and improved revenues.
Digital wallets will make a transaction more convenient and you’ll feel safer and secured while doing them. You can use the top digital wallets like Amazon Pay or Apple Pay to protect your store from attackers or hackers.
In this article, we have mentioned the top wallets and their reasons why you should use them for your eCommerce store.
Need help with wallet feature assistance for your eCommerce website? Get the help of our eCommerce integration services. M-connect Media can help you meet any eCommerce needs.