The Digital Wallet

Companies are shifting towards accepting digital wallets as it has helped increased customer conversion rates by being a more secure, convenient and faster form of payment. Mobile payments are expected to top $500 billion by 2020.

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Source: Agilie

Consumers now favour convenience, alongside online shopping and cashless payment methods. According to the figure above, e-commerce is showing no signs of slowing down. This shows that online shopping and the use of digital wallets may become the new norm, which businesses would need to adapt to this growing preference and behaviour.

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Source: Payments Industry Intelligence

Companies should adopt digital wallet payments because it is believed that physical money might phase out in the next 20 years. To be the early adopters of digital wallets could encourage purchase because of the convenience and safety it brings.

If someone steals your phone, or your laptop, without proper identification, the theft would not be able to access your monetary assets. Merchants also would not be able to access the consumer’s details and transactions information can’t be tied back to them hence fraudulent behaviours would be reduced. This increased trust could encourage sales.

Digital wallet is convenient but sometimes because of it, we are being charged more by a certain percentage. Hence, companies should be transparent about their charges and select implementation of digital wallets that best suit them.

I would recommend companies to accept as many types of digital wallet payments that is to their benefit as it reduces wait time for both customer and the company, improving customer experience. They could encourage the usage of digital wallets through discounts or loyalty cards linked to that wallet.

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Source: Statista 2019

Do you use a digital wallet? What do you think of it gaining traction and becoming a norm? Let me know!

-E.

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14 thoughts on “The Digital Wallet

  1. I personally don’t use it, only because I feel I’m less conscious of how much I’m spending! However, I do believe with the advanced security, I would feel safe using it, and it’s also very convenient!

    Liked by 1 person

    1. Thank you for your comment! I agree! The only digital wallet I use is PayPal because of the protection it provides from external merchants, where my details would not be shared with them and should I not receive my product, PayPal allows the cancellation of transaction by holding the payment to the merchant and refund me the money.

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    1. Thank you for your comment! I agree! With the advanced technology and virtualising your whole life into a single device is concerning. However, I do use PayPal because it offers protection as well. For instance, if you did not receive your product, PayPal would cancel the transaction and refund you your money without sharing your personal information with external merchants

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  2. I personally don’t use a digital wallet purely because I’m a bit wary of security concerns and would’t feel as safe using it. I have noticed digital wallets gaining traction at work though with quite a few customers using their phones to pay for purchases, which takes some getting used to! A really engaging read 🙂

    Liked by 1 person

    1. Thank you for your comment! I agree! I am wary too. Organisations would have to work ethically to ensure details are not misused and shared. Also, customers themselves should take their own security measures such as taking care of their phones and probably using a 2 factor authorisation to ensure that even the loss of their phones would not lead to an intrusion on their funds.

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  3. I love using my digital wallet! I think it’s so convenient and easy to use – no fuss trying to get out your wallet (or even remembering your wallet) everything is on your phone! I’m not too worried about security as most use either your passcode or face ID, even if it was lost or stolen you can also disable the wallet from being used.

    Liked by 1 person

    1. Thank you for your comment! I agree! I think it takes some getting used to considering how fast technology is advancing. Proper security measures are now in place and I could definitely see that it is gaining traction. I believe that with continuous advancements and assurance, more people would be more knowledgable of the digital wallet and how it may bring more convenience to their lives.

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  4. I am definitely guilty of using PayPal! I love how convenient it is, although I do feel like it makes me less conscious of the amount of money I’m spending since it doesnt feel like I’m really spending at all! And I do like the safety features in PayPal!

    Liked by 1 person

    1. Thank you for your comment! I agree with you! I use PayPal too and the security features in this digital wallet is one that I am very assured of, including not sharing my details with the merchants and holding the transaction should my items not be received. I think PayPal should include a feature where we could see our total spending and receipts to keep us reminded of our expenditure so far, like Commonwealth Bank.

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    1. Thank you for your reply! I agree that ethics, security and privacy is of utmost importance. Digital wallet companies should continuously update their policies and making it known to the public of their security measures to provide its consumers assurance. They should also ensure that the technical and security features are advanced and maintained to prevent hackers.

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  5. I primarily use PayPal every time I shop online! It’s a great payment system. I’m not sold on Apple Pay though, it still makes me feel uncomfortable! I’ve heard of many scams via Apple Pay as when it’s sent the bank can’t get it back for you. Thanks for the great read 🙂

    Liked by 1 person

    1. Thank you for your comment! I agree! I use PayPal when I shop too because of its rather well known security features. I did too, there were also claims that Apple has been misusing consumer data, causing an invasion of privacy. ApplePay should definitely improve its policies and security measures to gain the trust of its consumers to gain a higher traction in Australia, as compared to its large competitors such as PayPal.

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