Technology April 20, 2020 Last updated April 20th, 2020 2,583 Reads share

Digital Wallet: The Future of Pay, and Why You Should Care

Image Credit: DepositPhotos

Convenience, efficiency, and security combine in the digital wallet solution. These are the reasons why businesses have embraced the digital wallet in their system globally. We can certainly expect that this trend will continue for years to come.

We live in a mobile-driven age as smartphones have already started transforming the way we pay online. Be it a utility bill payment, online shopping, or sending money to friends in need- the digital payment solution always remains handy in the form of mobile wallets. Every mobile-savvy customer prefers this route of payment, and therefore, online companies have made it a part of their system and strategy.

Before we start discussing the future of the digital wallet and its scope as a robust payment channel, let’s go through some quick facts. Business Insider has predicted that the mobile payment volume will increase by up to 503 billion dollars by 2020 in the US. Another expectation is- around 56% of the US population will use the digital wallets in the next year.  The digital payment solution is the need of the hour and the digital wallet seems a future of digital payment. Let’s understand the digital wallet and its key benefits for modern businesses.

Digital Wallet- Brief Introduction

A Digital wallet or an eWallet is an online way to perform a secure transaction in a quick time. Individuals can easily transact for online payment or money transfer using a digital wallet. Simply put, the digital wallet is a replica of a physical wallet and users can add credit or debit cards for using it through their smart devices.

Apart from performing online transactions, digital wallets can store confidential information related to credit or debit cards and bank accounts of the users. They can also save other personal information of the users like health cards, driving licenses, and the like. Therefore, digital wallets need to be highly secure. The mobile app development company can build digital wallets for NFC (Near-field Communication) and mobile applications of the BFSI sector and various other companies.

How is the Digital Wallet the Future of Payments? 

An American cryptographer, David Chaum invented digital cashback back in 1983. The idea of the digital wallet is based on this concept. However, the digital wallet had started gaining momentum in the ’90s when technological advancements and spread of the Internet have contributed to the expansion of digital wallets. PayPal was established in the year 1998 to further boost the growth of digital payment worldwide.

In today’s mobile-dominated age, digital wallets have emerged as a robust digital payment solution. Many businesses tend to adopt digital wallets to provide more comfort and convenience to their customers. The growing number of smartphone users worldwide can enable enterprises to make the most of digital wallets and serve their customers as and when they want. As a powerful option to physical wallets, the digital wallet can remain very handy for people as they can get rid of carrying ID proofs and cash or credit cards everywhere.

Digital wallets have played a vital role in the growth of mCommerce. Everyone has a mobile phone these days, and it is possible to use it whenever is necessary for transactions thanks to digital wallets. Digital wallets provide a safe, convenient, and comfortable way to save the user’s time and effort for paying online. The digital wallet can enable the users to get rid of hassles related to cash transactions or staying in a queue for a long time.

Also, customers can save a lot of time thanks to a simple swipe. It is possible to make transactions on the move with the help of a digital wallet. Also, companies can offer rewards, promotional offers, and cashback for attracting more people to use their wallet services. The digital wallet can be a win-win situation for enterprises and customers alike. Companies can get instant access to funds, whereas, customers can have more convenience.

Many companies tend to jump on the digital wallet bandwagon to eliminate third-party intervention or additional spending on the POS (Point of Sale) system. Also, enterprises can fetch real-time data while offering improved user experience while providing a secure and swift digital payment option. There is no exaggeration in mentioning that the digital wallet is the future of pay.

Top Business Benefits of Digital Wallet for Your Company

Here are the major benefits of a digital wallet for your enterprise.

Improved Visibility

Users or customers can easily check the history of transactions with the help of a digital wallet. For enterprises, this record of expenses can remove the discrepancies in finance management. Digital wallets can effectively eliminate the paperwork for keeping a record of transactions and provide real-time access to related data. In a way, greater visibility to expenses can be achieved for daily spendings and daily tracking of spending is possible.

Increased Security

The digital wallet offers secured access to an online transaction facility and provides more controls to the users. Enterprises can give access to authorized persons for transacting through digital wallets. Unlike physical wallets, the digital wallet is more secure and convenient as users can utilize all the features through their smartphones. Even if someone finds the user’s smartphone, they cannot use the digital wallet because of enhanced security features.

During an in-store or online payment, the system generates a token that the stores can record for future reference. Here, there is no sharing of the user’s financial or payment-related information. This security feature of the digital wallet is one of the reasons for its growing popularity worldwide.

Enhanced Customer Service

The digital wallet can save the time and effort of the customers. Also, customers or wallet users can get the benefits of wallet-based promotional offers. In a way, customers find the digital wallet useful, convenient, and friendly for online transactions. Enterprises, on the other hand, can attract more customers and provide them an improved shopping experience.

Mobile-based payment solutions or mobile wallets have an interesting past, impressive present, and excellent feature. Let’s see how new trends in the digital wallet will change the shape of online payment in the year 2020 and beyond.

Concluding Lines

The digital payment solution is developed to increase the consumer’s convenience significantly. Digital wallets are indeed the future of online payment. You can contact a reputed mobile app development company to integrate the digital wallet into your system and stay ahead of the competition.

mobile payment concept -DepositPhotos

robert jackson

robert jackson

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