Over 50% of people in the US now use digital wallets more frequently than traditional payment methods. While some countries are still exploring the benefits of digital wallets, in others, people haven't used cash for years. Traditional credit cards are gradually fading into the background as digital wallets, also known as e-wallets, take center stage.
Innovations in technology, including AI and blockchain fintech solutions, have fundamentally transformed how we pay for goods and services. This transformation is not going to be stopped. Juniper Research predicts that by the end of 2024, there will be over 1 billion unique contactless mobile payment users globally. No doubt, the future of payments is digital.
E-wallets offer more than just a means to transact payments. Users can store a variety of important data in their digital wallet software, including:
- Gift cards
- Identification documents
- Passwords
- Travel tickets (for buses, trains)
- Concert and event tickets
- Hotel reservations
- Loyalty cards
KANTAR PUBLIC has reviewed and listed several functionalities enabled by digital wallets. While not a comprehensive list and not all wallets offer the full range of these features, it's beneficial to be aware of the possibilities. Here are a few examples that your organization might already require today:
- Budget Management: Helps set realistic spending limits by considering income, expenses, and savings goals.
- P2P Payments: Enables real-time money transfers between individuals, including payment requests.
- Offline Payments: Allows payments in specific situations without an internet connection or in mobile flight mode.
- QR Code Payments: Offers the ability to make payments by scanning a predefined QR code.
- Conditional Payments: Includes payment-on-delivery and pay-per-use functions.
- Merchant Dashboards: Provides visualization and monitoring of payments.
- Standalone or Integrated Solution: Use a wallet as a part of a banking application or a standalone app.
So, what difference does this make for merchants?
This shift in consumer preferences presents a significant opportunity for businesses to streamline transaction processing, enhance customer experiences, and unlock new revenue streams. Regardless of the type of wallet used—closed, semi-closed, open, IoT, or crypto wallet; digital wallets offer more than quick checkouts and payments. They provide valuable data and analytics previously unreachable, which today can revolutionize customer experience.
By leveraging digital wallets, your business can significantly enhance targeted promotions, personalized recommendations, and loyalty programs.
Consider the Starbucks Rewards program as an example. As consumers accumulate loyalty points, they can be rewarded with complimentary drinks or snacks. However, the primary requirement is that users must place their orders through the mobile application. As a result, Starbucks gathers valuable behavioural data, while customers enjoy a pleasant experience.
Thus, no matter your size—an established brand, a promising startup, or a seasoned freelancer—you all share a common goal: simplifying the payment process for your customers. By embracing e-wallet technology, your business can:
- Improve customer experience and relationships.
- Increase sales and boost your bottom line.
- Discover data-driven insights to enhance your products.
As consumer preferences and technologies continue to evolve, why not explore new digital wallets features today?
At ALCOSI, we offer e-wallet solutions for your business, and our team will be happy to answer your questions to support you on a journey towards mastering the ever-changing e-commerce landscape.
