A digital wallet is an electronic device, which allows people to make transactions online at a point of sale. Right now, there are different models of digital wallets available in the market that include check out, QR code and in app wallets.
Digital Wallet Landscape
This technology was first introduced back in 2007 and has continued to grow ever since. Some popular examples of digital wallets include Apple Pay, Samsung Pay, and Capital One.
According to experts and industry metrics, personalization and loyalty benefits are the reasons digital wallets have become so popular. For example, Starbucks states that their loyalty program is the reason their mobile payment app has gained so much success.
Similarly, Samsung has also reported that the number of people who use their digital wallet app has doubled in the last few years. This is largely because of features like loyalty functions, new methods of payments and an enhanced shopping experience.
Forecasts suggest that this industry is going to grow rapidly in the upcoming years. By 2017, it was worth $50 billion and the numbers have continued to grow ever since.
PayPal has the largest market share. NFC payments too are quite popular. In majority of the cases, transactions involved bar codes.
It has to be stated that there are some people who are skeptical about the future of mobile payments. They state that the US customers are still waiting for additional features like coupons.
Security continues to remain one of the major issues that digital wallet users are currently facing. People are concerned about data security because of which they are hesitant to switch to cashless payment systems.
Apart from that, operability is another major factor. Does the wallet work properly? Does it offer a good customer experience? These are all major factors that need to be considered.
Maintaining a POS infrastructure is also a challenge since the process of implementing loyalty and reward plans can be time consuming.
Service providers can highlight certain benefits of digital wallets in order to convince customers to adopt this technology. They can do so by educating them about the various benefits of digital wallets.
How do digital wallets enhance a person’s overall shopping experience? Also, inform the customers about some of the ways in which the company will ensure that their data stays safe and secure.
Get in touch with UIC World. They offer secure payment solutions that are safe and reliable. With these systems, you wouldn’t have to worry about data security. Apart from that, they also offer near field communication products and emv payment terminals. Contact them now at +1-510-438-6799.