A digital or e-wallet is an equivalent and more advanced form of a physical wallet. It's like a vault used to keep digital assets awaiting approval. E-wallets can be in the form of mobile payment applications that help store payment information on a user's smartphone. Such information comprises of debit, prepaid, and credit card details.
A mobile wallet can assist you in making online purchases, managing your reward cards, and organizing your credit and debit cards. E-wallet strategy is the current buzzword in the e-commerce industry. Mobile payments provide many benefits to individual consumers and businesses as well. Continue reading this post to learn some of the advantages of using the e-wallet.
If you have a business that sells products and services online, you've probably thought of ways to reach out to your client's through their mobile phones. E-wallets provide the most straightforward businesses which can be used to connect with more consumers. These digital wallets are rapidly turning out to be a mainstream payment method and are used commonly by android and iOS users.
In a recent study where 2000 smartphone users were interviewed in the UK and US, 54% of respondents said that they had utilized the e-wallet system in one way or the other while making purchases. Additionally, e-wallets are crucial elements in consumer loyalty programs. Furthermore, businesses can use the e-wallet platform to notify their consumers about their offers on products and services. This strategy enhances the expansion of a brand or company.
Increase customer retention
Today, customer experience is crucial for business success, and e-wallets can help achieve this. They help root out some of the cumbersome steps associated with checkout processes. Customers can auto-fill fields or tap to complete a transaction directly from their phones. Businesses can also use the mobile wallet strategy to award discounts and bonuses to consumers. This way, customer experience is highly boosted hence promoting customer retention.
Every e-wallet has its unique incentives. As mention above, e-wallets can offer consumers many ways of saving money through discounts and bonuses. However, businesses can use this platform to give value-added services to consumers, such as gifts, cashback, and lucrative offers. Customers can highly benefit from these offer sections as well as take advantage of promo codes.
E-wallets are significant in economic growth and revenue generation. For example, in 2016, 32% of consumers used the digital wallet to make purchases at least once. In the same year, research showed that the total in-store e-wallet purchases rose to $75 billion. By 2020, revenues from the e-wallet purchases are expected to rise to $503 billion. Additionally, assisting consumers spend on purchases, the e-wallet helps them earn. Furthermore, this industry is continuously creating more jobs without rendering other payment platforms obsolete.
Every mobile app faces challenges such as churn, and research has shown that average mobile apps can lose up to 95% of active daily users under the first three months. But remember, the success of e-wallet apps lies in user retention. Unavailability of strong user bases, as well as the ability to convert them, means no growth. E-wallets help reduce churn by aiding businesses to retain a strong customer base.
Digital wallets are turning out to be the future of online payments with many advantages. Your business should embrace the use of e-wallets soon enough to reap maximum benefits from the e-commerce industry.