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.
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.
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.
Source: Statista 2019
Do you use a digital wallet? What do you think of it gaining traction and becoming a norm? Let me know!