Today smartphones have changed how we connect, do business and communicate. Did you know mobile wallets were the famous POS payment approach worldwide in 2020? This increase was due to the COVID-19 outbreak and consumer fear of possible virus transmission in paper banknotes. So, if you are a business owner who is not using e-wallets, you are missing a lot. It’s because mobile wallets can help your business become more competitive. This post explores what a mobile wallet is and why you should use it for your business.
What is a Mobile Wallet?
A mobile wallet is basically a virtual wallet (also known as an electronic wallet) that stores data from debit cards, coupons, loyalty cards, and credit cards on a mobile device. It is accessible via an app installed on a tablet or smartphone.
Examples of the most famous mobile wallets include – Samsung Pay, Google Pay, and Apple Pay. Mobile wallet apps interact with POS terminals via NFC (Near Field Communication) technology. NFC uses a key, QR code, or other personal identification for payment processing.
Smart Reasons to Choose a Mobile Wallet
Here is why you should use a mobile wallet for transactions:
1. 100% Secure
Unlike cash and physical credit cards, the data stored in mobile wallets are fully secure because they come with encrypted keys that may fail to reveal any important information. This makes it tough for online hackers to conduct any fraud activity.
Moreover, a mobile wallet is difficult to steal or has no risk of getting lost anywhere. Your smartphone cannot be opened without a personal identification number or fingerprint. Therefore, it prevents your business from the claims of committing fraud against customers.
2. Easily Accessible
A mobile wallet is quickly accessible. So, no matter if your business is small or big, you can make a financial transaction with ease. You just need to download the app, create your user ID and password and add your card details.
Once credit or debit card data is added, it is easy for the consumers to make payments using one tap on the move. Besides this, every transaction you make gets reflected quickly onto your mobile wallet.
3. Broad Variety of Uses
Consumers and businesses can use mobile wallets for a wide variety of transactions like buying movies, buses, flights, or train tickets, paying water or electricity bills, transferring money, buying grocers, and much more.
4. Trim Wallet Contents
Few mobile wallets allow users to store loyalty and gift cards. This allows them to use the cards when required without putting any burden in your wallet.
5. Never Miss an Important Payment
Whether it’s paying suppliers, employees, or vendors, business owners need to keep up plenty of timely payments. But unfortunately, they may tend to skip the date on which the bills are due with the busy schedule.
In such cases, a mobile wallet can be a savior. Set an autopay, and the application will help you pay bills on the particular date automatically. This removes the need to remember to pay different people.
6. Come with Incentives
Each mobile wallet comes with its own incentives. Typically, mobile wallets have reward points, gifts, cashback, bonuses, etc. They can help users save a lot of money and boost sales for partnering companies.
If you are a business owner, you can benefit from this incredible feature by partnering with your local mobile wallet to provide a special offer to the users. Did you know 70% of individuals say that discounted deals are one of the main reasons to use mobile wallets?
Not tech-savvy? No worries! Like any mobile app, e-wallets are designed to be user-friendly. By using a suitable mobile wallet, you can provide a seamless experience to the consumers. The user can preload money in the wallet via debit card, internet banking, and credit card.
8. Minimal Waiting Time
Using a mobile wallet also helps the users lower the waiting and payments times because they do not need to fill in their information in every transaction they make.
9. Widely Accepted by Retailers
Mobile wallets are accepted by forward-thinking retailers worldwide. For example, apple pay can be used at more than 3 million U.S. stores, Samsung Pay at more than 10 million stores, and Android Pay at more than 1 million stores.
These numbers will increase as retailers upgrade their payment card readers. The new card readers usually come equipped with NFC technology (used by mobile wallets) to conduct payments. Also, as per Apple, 74 retail chains out of 100 accepted Apple pay as of Jan 2019.
10. Easy Tracking of Your Spending
Mobile wallets can give you in-depth insights into your business operations. They typically record every transaction and break down your expenditure by date, amount, and category. It helps businesses to track their consumers’ spending, whether reward programs are successful, and their preferred payments options quickly.
11. Split Bill Facility
Another biggest benefit of an electronic wallet is that it allows users to split expenses with friends. For example, with MobiKwik and Freecharge, you can split your bills by adding the amount and the total number of people you want to pay.
12. No Transaction Charges
Today, digital wallets have made sending and receiving money easy. They eliminate the need for any intermediaries. Best of all – there are no transaction fees that the user needs to pay for transferring money anytime and anywhere.
13. Save Money
Businesses switching to mobile wallet payments helps them cut down on costly point-of-sale systems and the number of cashiers.
14. Helps You Stay Ahead of Your Competitors
As per one report, the mobile wallet sector will reach $3.5 trillion by 2023. Also, one in three POS terminals will have mobile. These statistics are a good sign that use of mobile wallets is on the rise.
Today, more and more individuals are choosing an easy and quick way for payments with mobile wallets. Thus, accepting payments using them helps you gain a competitive edge.
The global shift towards cashless processing in society made mobile wallets quite popular in the mobile payment industry. Thanks to the high security and convenience they provide in comparison to traditional wallets.
By integrating mobile wallets into the mobile marketing strategy, businesses can increase meaningful engagement with customers. This ultimately leads to brand loyalty and high revenue.