Mobile wallets aren’t going to completely replace the most popular payment method of debit and credit cards anytime soon, but they certainly are strong contenders for taking that top spot at some point in the future.
If you’re currently considering whether a mobile wallet would be beneficial for your business, then here are a few benefits worth considering:
Safer and more secure
Mobile wallets use one of the most secure payment methods available today. That payment method is known as tokenization.
No bank account numbers are transmitted while making an online payment. Any sensitive payment data is replaced with a randomly generated string of numbers. This process, known as tokenization, adds an extra security layer to digital payments. Mobile wallet transactions are covered by the same security and privacy protections as your physical cards.
Additional security measures can also be available with mobile wallets including biometric authentication.
The advent of Covid raised concerns about handling “dirty cash” or touching chip and pin devices. This need to minimise contact and go touchless inevitably led to the sharp decline in cash usage and increase in contactless payment methods that we’ve witnessed over the last few years. This need to go "touch free" resulted in a spike in mobile payment adoption rates as people tried them for the first time. These behaviours have largely continued in the post-pandemic world.
Whilst Covid has driven higher adoption rates for e-wallets, it's the convenience of this payment method that has ensured consumers haven’t returned to old habits. This idea of convenience takes a number of forms.
A mobile wallet allows you to leave your wallet at home. Transactions are fast too. They can be completed in just a few seconds so there’s less time waiting in line. Simply hold your phone over the payment terminal to verify the purchase.
Mobile wallets can store credit and debit cards, and certain mobile wallets also can store loyalty cards and gift cards, allowing you to have them on hand at all times – as long as you have your smartphone, you can access them all.
A closed mobile wallet embedded into an app allows for a frictionless and seamless experience for your customers. There’s no need to go to a separate payment app to make the purchase.
Built-in loyalty programmes
An increasing number of branded mobile wallets today come with loyalty and rewards programmes built in. Rather than having to carry a physical loyalty card around, the virtual card is embedded into the wallet and always on-hand. This makes it easier for customers to rack up rewards.
Whilst different types of mobile wallets - closed, semi-closed and open wallets, for example - share a number of benefits, granular level data analytics is only available with a closed mobile wallet. With a closed wallet you’ll be able to see a customer’s shopping history and preferences, which facilitates more targeted marketing campaigns. Real-time data analysis also helps your business manage inventory and create more accurate budgets.
Mobile wallet loyalty programmes
Mobile wallets are the ideal delivery mechanism for loyalty and reward programmes. According to Airship, 69% of customers are more likely to use a mobile loyalty card when it’s on their mobile phone. Furthermore, as consumers, we love our mobile phones! There isn’t a better way to get targeted rewards and offers in front of your target audience.
E-wallets streamline the checkout process, which provides a better customer experience. Customers can get frustrated if they try to make a purchase, only to be faced with a lengthy checkout page to fill out. With fewer click-throughs and forms, shopping cart abandonment rates go down and conversion rates go up – a win-win for your business and customers alike.
A security breach can create a serious hit to your reputation. When you implement a mobile wallet into your app, you can provide an extra layer of security with the use of biometrics like fingerprint or face recognition technology.
Now that you’re up to speed on the benefits of mobile wallets and closed mobile wallets in particular, let’s discuss how your business can benefit from this technology. Simply get in touch with us today!
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