It’s safe to say that the way consumers make payments is changing before our very eyes. It doesn’t matter whether it’s a Friday night take-out, home DIY equipment, a dress for the next big night out or paying for the monthly Netflix subscription, more people are striving for more convenient and accessible methods of payment online. As the world’s cashless economy grows at pace, this is being driven largely by a rise in the use of e-wallets, also known as digital wallets.
There is no denying that conventional methods of shopping are frustrating; particularly in the time-poor, 24/7 world that we now live in. Shoppers no longer have time to fill out form upon form of information about their address, billing address, card account number, sort code, and the like. While all this data is important for merchants, it’s rather more tedious and unnecessary for consumers.
In fact, in today’s climate, the rigmarole of form-filling can sometimes be the difference between online retailers clinching a sale and missing out on revenue.
E-wallets and mobile payments can turn millennial prospects into customers
That’s why more businesses need to acknowledge the dual-purpose benefits that digital wallets can bring. Not only do e-wallets accelerate the checkout procedure for consumers, they also increase acquisition rates and income for retailers.
There are various sectors that are ramping up use of e-wallets as a convenience method of payment. The online takeaway industry has seen major players like Just Eat and Deliveroo accept digital wallets for some time now, enabling people to place food orders within just a few simple taps. In the iGaming industry, e-wallets are also rapidly becoming commonplace due to their speed and accessibility. All the best online casinos usually present a solid list of at least four e-wallet providers as accepted deposit methods for players.
For merchants themselves, there is also a financial benefit for embracing digital wallets. Retailers that accept payments via traditional debit or credit cards are normally imposed with commission fees by banking institutions. The reality is that retailers which turn over more sales at greater volumes incur bigger transaction fees on top.
E-wallets help by optimising the checkout process for consumers and reducing the need for commission on processing payments. It’s also important that e-commerce platforms are seen as pushing to stay ahead of the digital curve, looking beyond the conventional over-the-counter methods to give customers the best available choice.
Mobile wallets are almost three times quicker to pay than cards
One form of payment that is growing at pace is mobile payments. Millennials, who now comprise the biggest demographic of the global working community, are increasingly favoring payments via smartphones.
The primary reason behind mobile transactions is the increased security measures that provide a much-needed additional layer against cyber-criminals. Thanks to the use of biometric technology, mobile wallets are arguably more secure than conventional bank accounts due to the need for facial recognition, fingerprints, and even voice authentication.
Mobile wallets are also a viable option for the millions of consumers where conventional banking simply isn’t feasible. This may be due to geography, or individuals who have previously experienced financial hardship and are less attractive to high-street banks today.
According to Readwrite the average transaction time of a mobile payment is just six seconds. Compare that with the speed of a card transaction (15 seconds) and it’s further proof that digital payments are a more convenient and secure way of completing cashless transactions.
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