How Businesses Can Use Digital Wallets to Drive Sales
Digital wallets, sometimes known as e-wallets, are software-based systems that allow users to complete transactions with another party electronically using a computer or smartphone. The e-wallet can store the user’s payment information and passwords for many different payment methods as well as being able to hold other data such as digital coupons, store loyalty card information, and membership discounts. Some may incorporate geo-locating and pop-up notifications and with some wallets, you can even link documents such as your driver’s license or a health card. In short, e-wallets allow you to buy things both online and in stores easier, and digital wallet security is better than more traditional payment methods and basically eliminates the need for a traditional wallet.
Digital payment systems have likely been around longer than you think. Credit for the first digital payment system goes to Coca Cola which developed a system in 1997 that allowed customers in Helsinki to by drinks from a vending machine using a text on their cell phone. Things have changed a lot since then. Improvements in mobile technology, better internet speeds, and increased consumer awareness have all contributed to the growth of digital wallet use. Globally over 2 billion consumers used some form of digit wallet to make a payment or send money in 2019 and that number will only go up. The Worldpay Global Payments Report 2020 expects that 50 percent of global eCommerce sales or close to 3 trillion dollars will use digital wallets.
With e-wallets poised to become the online payment method of choice, the question then becomes which digital wallet should your business use. In November of 2019, there were around 170 different digital wallets world-wide, with some having global recognition, while others are only recognized regionally and known to a relatively small number of users. This creates an issue for businesses as most don’t have the capability to set up a different payment system for all the e-wallets out there, even if they only focus on the largest and best known. The solution to this is to use an online payment gateway such as Stripe. Moreover, if you run a business that is prone to chargebacks, you need high-risk merchant accounts to accept credit card payments on your website.
Stripe benefits start with being able to process many payment types such as Visa, MasterCard, American Express, and a number of different foreign credit card networks as well as payments from digital wallets such as Alipay, Apple Pay, and Google Pay. They are available for businesses in 39 countries and can process payments in over 130 currencies. Stripe also makes it easy for your business to set up recurring and subscription payments. It also allows you to offer your customers discounts and coupon codes. Most importantly it offers a checkout experience that is seamless which translates to increased sales. Using Stripe or a similar payment gateway allows you to use multiple payment methods with one platform. The use of e-wallets is growing at a rapid pace and online businesses who don’t want to miss out should look into digital wallet development for their websites. Having a good payment gateway is going to be essential for your business. However, to integrate a payment gateway like Stripe into a website seamlessly requires some specific knowledge. It is advisable to hire a Stripe coder with experience in Stripe development if you don’t possess the necessary programming skills yourself.
Use Digital Wallets to Increase Sales
Increasing sales and thus profits is something all businesses strive for. Adding digital wallets to the payment method your business accepts is one way that you can accomplish this. The following are some of the different ways in which e-wallets can help boost your sales:
- Simplify Checkout: When shopping online many people are also doing something else. Whether it be watching television, working, or taking the bus consumers to want a simple procedure while multitasking. When the process is complicated or slow there is a good chance that even consumers who are ready to buy will abandon the checkout process. Digital wallets are fast and less complicated to use, sometimes requiring only a single click resulting in less abandoned shopping carts.
- Beacons: Businesses can target consumers directly on their phones by using beacons. Beacons will send a personalized message directly to shoppers in their vicinity.
- Special Services: Digital wallets can be used for more than just payment. Businesses can notify customers about coupons and gift cards that are available and offer reward points. They can even let a customer know if they have a coupon that is about to expire. Some digital wallets such as Apple and Google also offer exclusive deals that users can take advantage of. Basically, a digital wallet can be used as a marketing platform as well as for payments.
- Security: Security when processing transactions is an issue for any business. Digital wallets use random transaction numbers that are generated for each transaction made. No account number or credit card number is given reducing the chance for fraud. Even should the device on which a digital wallet is installed be stolen, information is encrypted and can only be accessed with a password, or on some mobile devices with a fingerprint.
- Increased Spending: According to surveys consumers tend to spend more when shopping with digital wallets.
- Smaller Fees: Fees for customers who use digital wallets are typically less than those charged by a credit card company. This can increase sales, especially on lower-priced items where credit card fees could make up a substantial portion of the overall price.
Clearly the use of digital wallets has progressed far beyond the point of being a fad. In order for businesses to survive, they will have little choice but to adapt to the use of e-wallets as a form of payment. As is always the case those businesses that provide the best customer experience will be the ones that thrive. It is well worth the investment to pay a Stripe business development salary to ensure you integrate a payment gateway that provides a good user experience on your business website. Digital wallets are here to stay and now is the time to take advantage of the opportunities they offer.
Anastasia is a passionate writer and Information Technology enthusiast. She works as a Content Manager at Mobilunity, a provider of dedicated development teams around the globe. She is fond of keeping abreast of the latest news in all areas of technology, Agile project management, and software product growth hacking, at the same time sharing her experience online to help tech startups and companies be up-to-date.