Why Does the Market Need More Digital Wallets?
With swiftly growing internet use and smartphone services, the world today largely requires FinTech-backed initiatives, such as Digital Wallets. It was the most popular POS payment approach last year, especially owing to the global pandemic. It can store multiple credit and debit cards and other payment methods in one digital home and can help to make quick and easy payments from your phone, tablet and even a smartwatch.
Digital payments have evolved tremendously casting aside the physical wallets, especially over the past few years. It is powerful in many markets as it allows users to convert cash into electronic money. This can then be spent online or in-store. It helps foster greater financial inclusion as well. Moreover, it is as convenient for businesses as for customers.
How Does It Benefit Businesses and Retailers?
Investing in application development saves merchants money in the long run. Here are all the benefits a company can enjoy from adapting Digital Wallets.
• They offer lower processing costs as compared to other payment methods.
• Fewer limitation on transaction values and frequency of transactions.
• Businesses can increase their scale with ease.
• They can enjoy a unified and centralise payment system with eWallets.
• It offers excellent user experience and single touch transactions for their customers.
Why Do We Need More Digital Wallets?
1. Faster, Flexible and Convenient
The biggest advantage of this FinTech application is that it is capable of making immediate payments. You can also make purchases and send or receive money instantaneously. Moreover, it can be accessed any time of the day and from anywhere on the planet.
2. Robust Security
eWallets are inherently more secure. It works with passwords, fingerprint scanning and face recognition techniques and restricts access to the bank account. The financial data stored in your digital wallet is also encrypted. Moreover, it works on a token system. Every transaction made generates a unique transaction identifier that is of no use later. So each and every payment is secure.
3. Discounts and Rewards
Paying via Digital Wallets can make you save a few bucks. This is because, companies offer cashback rewards, discounts and coupon codes to attract more users. On the other side, businesses can also personalise services and offer discounts to clients to make them purchase more products and increase sales.
4. Cost-efficient
There is little to no bank transaction fee levied for making payments via eWallets. There is less engagement of human resources that service on the front desk at the banks and hence, less overhead costs. Moreover, savings can be made on printing receipts. Digital Wallets maintain a transaction list that can be used as a warranty policy or evidence for claims.
5. Next-generation
Millennials make wide use of the internet and digital medium, be it for communication, entertainment or payments. A study as reported by Alcatel-Lucent stated that more than 80% of youth showed keen interest in using digital wallets. More and more businesses are also accepting this futuristic technology to cope up with the digital revolution among youngsters.
The Future Of Digital Wallets
A new study conducted by Juniper Research has found that the total spend via digital wallets may exceed $10 trillion by 2025. This clearly indicates there lies an exciting digital journey ahead of us. Especially with the increased use of biometric technology today in application development, the scope of Digital Wallets is increasing in every sector. Developers are working towards building a secure, reliable and robust payment infrastructure. We can look at a wider use of face-recognition payment systems, blazing-fast real-time payment transfers and low-cost transaction methods.
End Note:
With BFSI becoming technologically advanced, it is the need to further make payments convenient. More and more users are becoming comfortable with non-cash payment methods. The role and scope of Digital Wallets are gradually evolving to meet the needs of both- businesses and customers, remittance processing service.
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