Online shopping is known for its convenience to buyers worldwide, and thanks to the new normal, it has become interchangeable with ‘buying anything.’ Therefore, businesses are looking for faster, sleeker, and easier checkout processes for all customers; and the boom of digital wallets in the market only goes ahead in proving the same. These virtual wallets allow consumers to store their payment information in one place, making it easy to complete purchases with a single click. These digital wallets are equally handy in shopping offline as well since the customers just have to scan the QR code to get through their purchases in any physical store. But do these features help in generating sales? In this blog, we take a deeper look at digital wallets and how they work to drive to create more sales:
What are digital wallets?
A digital wallet, or an e-wallet, is a software application that safely stores a user’s payment information, such as credit card details, bank account information, and loyalty card numbers. This information is stored securely and can be used to complete transactions quickly and easily. Digital wallets can be accessed through a computer or mobile device and are often linked to a specific payment method or your bank account.
How do digital wallets benefit businesses?
Online shopping today is as easy as one tap on the smartphone, digital wallets make frictionless spending happen. From being fast, and safe to be omnichannel, digital wallets can also help businesses analyze buying behavior of customers, by collecting data on their shopping habits. Here’s a detailed look at each of these benefits:
Faster checkout process
Among the many benefits of digital wallets for businesses is that they make the checkout process faster and more efficient. With a digital wallet, customers can complete transactions with just a few clicks, without having to enter their payment information every time they make a purchase. This not only saves time for customers but also reduces the risk of cart abandonment, as customers are less likely to get frustrated and abandon their purchases if the process is quick and easy. This is why many platforms like BigCommerce were the first to integrate digital wallets into their deliverables. However, brands can customize their checkout processes by hiring BigCommerce development agency like CodeClouds. Their experts can help you deliver personalized experiences to your customers.
Digital wallets also offer increased security for businesses and customers alike. By storing payment information in a secure, encrypted format, digital wallets help prevent fraudulent transactions and reduce the risk of data breaches. This can help businesses avoid costly chargebacks and other losses associated with the fraud.
Improved customer experience
By offering digital wallets as a payment option, businesses can leverage the best of speed and convenience to their win. Customers appreciate the option of completing transactions quickly and easily, without having to enter their payment details repeatedly. This can help build customer loyalty and increase customer satisfaction, leading to repeat business and positive reviews.
Access new customers
Digital wallets can also help businesses reach new customers who may not have been able to purchase in the past. For example, customers who do not have a credit card or prefer not to use one can still make purchases using a digital wallet linked to their bank account. This can open up new markets and increase sales for businesses.
Finally, digital wallets can help businesses save money. By reducing the risk of fraud and chargebacks, businesses can avoid the costs associated with these types of losses. Additionally, digital wallets can help reduce the cost of processing payments, as they often charge lower fees than traditional payment methods.
Examples of digital wallets
There are several digital wallets available on the market today, each with its unique features and benefits. Here are a few examples:
A giant in the digital wallet and finance industry, PayPal has over 377 million current users across the globe. PayPal allows users to store multiple payment methods, including credit/debit cards, and bank accounts. Customers can also link their PayPal account to their eBay or Amazon account, making it easy to complete transactions on these platforms.
A digital wallet designed specifically for Apple devices, users can store their credit and debit card information and complete transactions using their iPhone, iPad, or Apple Watch. Apple Pay also supports loyalty and gift cards, making it a convenient all-in-one payment solution for all Apple suite products.
Google Pay is a digital wallet for Android and iOS devices. Besides storing their credit and debit card information, Google Pay also gives loyalty/gift cards, cash back, and vouchers. Google Pay also integrates with Google’s other services, such as Google Ads, Google AdSense, Google Analytics, etc.
In conclusion, digital wallets have changed how people do business and transactions today. With cashless payment methods getting popular for health and data safety reasons, simply scanning/swapping through your phone makes everything easy for your consumers shopping online.
- Confidential & Secure Transactions: Biometrics & Passwords make all your payments encrypted and secure without having to store/reveal any information.
- More Control: Your consumers can keep check of all their expenses in one place, especially for new and repeat customers who can plan further purchases based on their previous orders.
- Real-Time Data Access: Digital wallets can help you as a business owner to access and analyze customer shopping trends from their purchase history. This can help you in engaging your customers with loyalty points/email marketing to keep them involved and updated with your brand updates.
- Seamless Customer Experience: Speed and efficiency go a long way in online businesses, and digital wallets are user-friendly and convenient to give your customers a rich and positive experience.