A few years ago, people treated the idea of a digital wallet as one bound to fail. No one was willing to put their money in the hands of this completely foreign idea, especially when you could just use your credit card to make payments just as easily.
However, recent years have seen a rise in the number of people using mobile payments. The mobile wallet market is expected to surpass a value of 250 billion USD by 2024.
Despite this, some people are very skeptical about mobile wallets and prefer using mobile banking instead. This is understandable. Mobile banking has been around for longer and is more familiar to a lot of people.
Nonetheless, by not using mobile wallets, you’re missing out a lot, especially if you’re a business owner. Now, you may be thinking, how can my business benefit from using a mobile wallet over mobile banking?
Using a mobile wallet makes your business more competitive. It’s also more convenient to use, offers better security, and has lower costs.
In this article, we’ll dive into a little depth about how your business can benefit from using a mobile wallet over mobile banking. So, keep reading!
As a business, you should incorporate the use of mobile wallets for these reasons:
Did you know sales revenue earned through mobile wallets is predicted to reach 50 billion USD in 2021? One in every three point-of-sale terminals is expected to accommodate mobile wallet payments.
These statistics should be a good indicator of how popular mobile wallets have become among consumers. More customers are now using mobile wallets, and hence more customers now want to pay with mobile wallets.
Accepting payments made via these e-wallets will therefore give you a competitive edge. If you’re the one in three businesses that accept mobile payments, you’re attracting a fair share of customers away from the other two businesses.
The easier you make payments for your consumer, the more sales you’ll make – and nothing is easier than mobile wallets.
In contrast, mobile banking mechanisms can’t be integrated into your sales system unless you’re planning on asking customers to transfer the money owed to your business account, which creates more problems than it solves.
When we say convenient, we’re talking about speed. With mobile wallets, you get quick transactions than credit or debit cards. With debit cards, you must enter your pin before completing the purchase, which of course, takes a bit of time.
Similarly, credit cards may require you to sign the receipts. Once again, this makes the process of making a sale lengthier.
Alternatively, making a payment through a mobile wallet is quick and simple. Customers simply touch their e-wallet on an NFC reader, which registers the wallet and cuts the amount owed. This is called the touch n go system, and it’s extremely quick.
So, with mobile wallets, all your transactions can happen quickly and seamlessly.
Though credit cards and mobile banking are popular modes of payment, they come with a variety of risks. As a business, you and your employees are responsible for making sure that a customer is not using a stolen credit card. You can also fall victim to fake credit card scams, where you only find out the payment wasn’t made when it’s too late.
On the other hand, mobile wallets don’t have these risks. When customers use their mobile wallets for a purchase, they have to present a form of verification, such as a fingerprint or a PIN. This way, customers can only use their mobile wallets for purchases, and you’re less likely to fall victim to fraud.
Mobile wallets are also encrypted. So, when customers make a payment, their actual account numbers aren’t used. Instead, a random payment code is generated and used. So, you can’t be privy to claims of committing fraud against customers either.
As a business, no matter how big or small, you want to make your financial transactions easier, and mobile wallets will do just that. With mobile wallets, it’s easier to add money to your company account as compared to mobile banking.
All transactions made are also quickly reflected onto your company’s mobile wallet. In comparison, changes take a while to reflect on mobile banking accounts.
A huge allure of mobile wallets is the promotional offers they give users. Most mobile wallets will offer users exclusive deals, sales, or cashback offers.
Offers like these draw customers towards mobile wallets and increase sales for partnering companies. As a business, you can take advantage of this once you start accepting payments made via mobile wallets, partner up with a local mobile wallet to offer an exclusive deal to users.
According to Pew Charitable Trusts, 70% of millennials say that discount offers are one of the most compelling reasons to use mobile wallet payments. This exclusive deal is sure to boost your sales revenue and offers you a new channel to promote your business.
As a business, you’re probably no stranger to having to make payments. Whether it’s paying employees, vendors, or suppliers, businesses have to keep up with a lot of timely payments. With mobile wallets, you don’t have to worry about missing a payment ever again!
Nearly all mobile wallets allow you to set up an autopay schedule so you can pay all your dues on a specified date. So, you don’t have to worry about remembering to pay a range of different people.
This advantage is also applicable to your customers! If you offer recurring services, such as a monthly subscription, your customers can use a mobile wallet to make sure they pay you on time each month.
This feature is available on a limited number of mobile banking applications as well. However, since timely payments aren’t one of the main aims of mobile banking, this feature is nowhere near as good as it is on mobile wallets.
Mobile wallets essentially remove the need for any intermediaries. When you start accepting mobile wallet payments, you can get rid of the expensive point-of-sale systems. Instead, you just need to invest in cheaper NFC machines.
Similarly, if you switch over to just mobile wallet payments in the future, you can cut down on the number of cashiers you’re hiring. The need for cashiers will essentially become obsolete, as people can just use self-scanners to log in their items and the touch-and-go system to make the payment.
Mobile wallets can give you a good look into your business operations. They provide you with data on every transaction you make, and we’re talking about detailed data.
Depending on the mobile wallet you’re using, you can get access to information such as how much consumers spend, their preferred payment methods, and whether your reward programs are successful.
You can use this data to make needed changes and increase your revenue.
So, you’re considering accepting mobile wallet payments. Here’s how you do that:
If your credit card processor doesn’t accept mobile wallet payments or you just don’t have a processor yet, consider working with a digital processor, such as Square or PayPal. Once you agree with them, you just need to get a card reader with NFC technology.
39% of consumers have said that they would use mobile wallet payments if businesses accepted them. By accepting mobile wallet payments, you can come to the front of the trend and attract this 39% we’ve mentioned.
The use of mobile wallets is on the rise among customers and is definitely becoming to be more popular than mobile banking. This is simply because mobile banking increasingly seems to be outdated in comparison to mobile wallets.
Mobile banking is not as speedy, accessible, or safe as mobile wallets. This is why consumers prefer to use mobile wallets and why you should too! By incorporating the use of mobile wallets into your business, you simplify many financial processes occurring within the company and make payments easier for your customers!
So, if you want to save yourself from fraudulent activities and increase your revenue, consider using mobile wallets.