Mobile wallets have been making waves for a while now. With all the benefits that they provide, one would think that everyone would be taking advantage.
So why are they not?
A huge barrier to using mobile wallets is security concerns. It took many years for people to get on board with buying items and making purchases online due to security risks. This new avenue of paying will take some time for people to get comfortable with, as well.
The good news is that the use of mobile wallets is expected to go beyond the debit card and credit card use. And when the much more secure blockchain technology becomes the norm, the number of users will increase even farther. The earlier merchants get on board and learn the ropes, the better off they will be.
Benefits of mobile wallets to mobile commerce
Some ways in which mobile wallets are and will be changing mobile commerce are below.
Mobile wallets are incredibly convenient for consumers. As they do not have to worry with a physical wallet, there is much less of a chance for them to lose money or forget their wallet. Since most people always have their phone handy, it is very simple for them to make purchases and payments. Another widely advertised benefit is the ability for consumers to easily split costs among friends. For instance, if a group goes takes a friend out to eat for their birthday, the rest of the group can easily separate the cost and pay.
#Better Customer Experience
In addition to the convenience that customers experience, it is also much faster for them to pay for items. Mobile wallets do not require digging a wallet out, swiping a card, or counting out cash. It is very fast, so it saves them time as well as anyone in a line behind them. Most mobile wallets also provide promotions to customers. They might receive points to trade in for items or cashback. These mobile wallets keep up with purchases, as well.
Walmart Pay is one such mobile wallet example. It stores your payment methods, including many gift cards you might have. When it is time to pay, you simply scan the QR code on the payment screen and it automatically deducts the amount from your preferred method. It also stores your receipts so you can see past purchases and return items more easily if need be.
For a few reasons, mobile wallets lead to more sales than traditional payment methods. The ease and convenience are, of course, contributors. With the ability to make instantaneous purchases, consumers are more likely to buy items. However, there is a deeper reason for the increased sales.
Psychologically speaking, it is more difficult for people to part with cash than it is an electronic payment method. Therefore, financial advisors suggest paying with cash, especially when you are trying to stay on a budget. Therefore, since mobile wallets do not involve physical cash, consumers will not struggle so much when it comes to purchasing items.
#No Expensive Systems for Merchants
Traditionally, if a business opted to deal with electronic payments, they generally had to purchase expensive systems. With mobile wallets, that is not always the case. While merchants can choose to purchase and use an actual POS system, it is not necessary.
Consider PayPal; it is a digital payment system. When you accept a payment or send a payment, it does not require an entirely different system. The payment is either sent from a desktop, laptop, or mobile device. As the cost to receive payments decreases, merchants can drop their product or service prices. Lower prices give a competitive advantage and, generally, more sales. Lower merchant costs also open the door for more people to open businesses.
The benefits of mobile wallets are too important to overlook. And as they will be such a large part of mobile commerce, businesses need to prepare or risk becoming obsolete. Remember that technology increases, consumers expect more and more convenience. If a consumer must pick between a merchant that offers convenient payment methods and one that does not, he or she will almost certainly choose the one that does.
If you have not begun using mobile payment systems, it is time to start. Waiting until they become the main payment form might be a costly mistake. Start by looking into using systems and mobile wallet apps such as PayPal, Samsung Pay, and Apple Pay. You might also consider a closed-loop payment system like Walmart Pay for your own company. Research these options and begin to put them to work one at a time so that you have time to learn them and utilize them correctly.