The Business Benefits Of Going Cashless With A Mobile Digital Wallet

The following is an excerpt from our Cashless Payments Guide. Download the guide in full for an in-depth look into mobile payments and understand the different options available to you, when implementing a digital wallet solution at your event or venue.

Overview

Mobile payment solutions are often described as an E-wallet, digital wallet, online wallet or mobile wallet. There are many names, but they all mean the same thing – mobile payment solutions enable you to pay for purchases using a smartphone.

Before the start of the pandemic, using your mobile as a payment method was already increasing exponentially. In the United States alone, mobile payments are projected to reach $161 billion by 2021. Globally, the mobile payment market reached over $3 billion in 2019 and is expected to grow to $12 billion by 2024. These figures appear to be an underestimate, now that the move to cashless transactions is accelerating, as a result of COVID-19.

The number of payments made via a smartphone has increased dramatically in recent years, and it’s predicted that mobile payments will be the second most common payment method after debit cards by 2022. Mobile transactions are rapidly on the increase and are driven in the main by Generation Z who have readily adopted this technology. 

Options for Mobile Payments

 A business choosing to implement a mobile pay solution can do so in one of two ways:

1. Third Party or bank mobile pay/digital wallet provider
2. White label digital wallet

1. Third Party Mobile Payment Provider

These mobile payment technologies use NFC (near field communication) technology which is an extension of RFID technology. Some of the major third party providers are Apple Pay, Samsung Pay and Paypal. These solutions have millions of users worldwide.

Pros

• Contactless
• Secure
• Cashless

Cons

• You don’t gain any data insights from transactions made via your mobile app. The data is only visible to the third party payment provider.
• No sponsorship opportunities, as creating an in-app payment solution can give you a new category for brands to sponsor.
• Reduced fan engagement with your app.
• Transactions need to be made at a closer proximity than with QR codes.

2. White Label Mobile Pay

A white label mobile payment solution, means utilising the digital wallet technology of a third party which integrates into your own company app. As it’s white label, it has your company branding, is a frictionless experience for your fans and all data collected as a result of transactions made in the app belong to your company.

A white label mobile solution allows you to have contactless payments, venue access control, loyalty and ticketing all in one mobile ecosystem. Some further benefits:

• Safety – eliminates the need for cards or cash. QR codes are used for transactions meaning customers can purchase at a further distance than any other payment method.
• Simplicity – white label digital wallet solutions are fairly simple to integrate with your existing systems. The Tappit Mobile Pay solution for example, just requires an upgrade to your existing POS.
• Increased spend – making spending effortless increases fan spend. Some of our clients have seen uplifts of in excess of 60% spend per fan.
• Increase value for your sponsors – know who your VIPs are and how best to target them.
• Integrate with loyalty schemes, reward programmes and your existing venue and finance partners.
• Totally understand your fans – gather data on your customers’ spending journey with you then utilise this to drive fan engagement, customer retention and profit.

Again, there are 3 further potential ways of using a white label payment solution:

1. Preload
2. Pay as you go
3. Stand alone (appless) app

1. Preload White Label Mobile Pay

Preload mobile pay, is simply when fans add funds to their in-app wallet and pay on site. This makes it particularly great for younger consumers and gifting – enabling budgets to be set and tracking spend.

Pros

• Frictionless in-app experience.
• Improve cash flow, as preloads go straight to you.
• Great for gifting and budgeting.
• Transaction times are faster, as authorisations do not need to involve a separate payment clearing service.
• Faster to set up with your existing tech.
• Ability to add monetary or product voucher incentives.
• Understand the behaviour of EVERY fan.

Cons

• It requires money to be loaded onto the wallet ahead of spending it.

2. Pay as you go White Label Mobile Pay (or Digital Wallet)

This is a digital wallet, that sits within your app and is fully branded in line with your organisation. Your fans can connect any payment type (eg credit card, bank account, Google Pay, Apple Pay etc) to create a digital wallet which is unique to your venue or team. Consumers will be able to access all the functionality of a digital wallet, but from within your organisation’s existing mobile app.

This solution requires a digital wallet payment processor eg PayPal, First Data or other main banks.

Pros

• Frictionless fan experience.
  
• Keep your fans within your app and brand for longer.
• Understand purchasing behaviours of every fan.
• Ability to add monetary or product voucher incentives.
• Safer, faster and easier transactions.
• Number of transactions and average spend per head increases.
  

3. Stand Alone (Appless) White Label Mobile Pay

For organisations who don’t have an existing app, but want to deliver a cashless mobile pay solution for their customers. This is the simplest mobile pay solution.

Pros

• Doesn’t require an existing app
• All the benefits of white label mobile pay
• Cleaner, safer, faster
• Transaction times are faster, as authorisations do not need to involve a separate payment clearing service.
• Ability to add monetary or product voucher incentives.
• Understand the behaviour of EVERY fan.

If you’re thinking about implementing a mobile pay solution in your business then we’d recommend that you download our cashless payments guide as a start point. Or if you’d prefer to speak to someone then just get in touch with us to discuss.